Germany's Reiche backs orderly return and re-tender of unviable offshore wind projects
After eight states warned of a stall in offshore wind, Germany's economy minister said failing projects could be handed back and re-auctioned, though developers would remain bound by financial obligations.
Archive image · Photo: Jan Oelker für Area Wind / Wikimedia Commons, CC BY-SA 4.0 (cropped and resized)
German Economy Minister Katherina Reiche said projects that prove economically unviable should be returned and re-awarded in an orderly way, as she seeks to revive the country's stalled offshore wind expansion. Companies would not be released from their financial obligations, she told the German Press Agency dpa. "At the same time, we are putting future tenders on an economically sound footing," Reiche said.
Her comments respond to a letter from the leaders of eight states, including Lower Saxony, Bavaria, Hamburg and Schleswig-Holstein, who warned of a break in offshore wind development and job losses linked to a planned reform of the offshore wind law. The government's draft still does not provide for developers to hand back awards unilaterally.
Sites for about 16 gigawatts were auctioned in 2023 and 2024. "The German offshore wind auction system had significant flaws," Reiche said, adding that known risks had been ignored. Interest in tenders has fallen due to higher financing, supply-chain and project costs. Industry groups BWO and BDEW are calling for a return option with rapid re-tendering.