The chief executive of RWE Offshore Wind says the German government should cancel an offshore wind auction due to take place in 2026 and press ahead with legislation that will usher in the use of Contracts for Difference (CfDs)
At the end of 2025, after failed auctions and pressure from industry associations, the German parliament enacted modifications to legislation governing auctions for offshore windfarms, amending the WindSeeG, the country’s offshore wind energy act, but didn’t make major changes to auction scheme.
The modifications mean that later in 2026, up to 2.5 GW of capacity will once again be auctioned – but using the same auction design that failed to attract bids in 2025.
Speaking after the TenneT ‘ReThink Offshore’ event in Berlin, Sven Utermöhlen said the 2026 auction should be postponed until key challenges have been address and changes implemented.
“Three issues are critical,” he said. “Firstly, market design that provides bankable investment conditions for capital-intensive offshore projects, with two-sided CfDs as the backbone for meaningfully derisking projects and make them investible.”
Secondly, he said, there needs to be a stronger focus on system and cost efficiency, including smarter spatial planning, reduced turbine density, higher full-load hours and better utilisation of offshore grids.
Thirdly, he said, there needs to be “an honest discussion” on volume and timing, aligning expansion targets with what can realistically be built, financed and connected in a reliable and system-efficient way.
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