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(Bloomberg) — Germany has canceled its remaining 2026 offshore wind auctions after the last round in August failed to attract bids and the industry lobbied for better terms.
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The cabinet on Wednesday approved a legal amendment proposed by the economy ministry to push this year’s auctions into 2027, a ministry spokesperson said. Germany didn’t offer subsidies in its offshore wind auction last year, and industry groups have warned the same will happen in future rounds if nothing changes.
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The move is the latest sign that governments in Europe are under pressure to up the financial incentives for building offshore wind farms. Rising supply chain costs have led to some developers slashing plans or refusing to enter zero-subsidy auctions.
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The government already reacted to earlier warnings by considerably shrinking auction volumes for this year, before now canceling them. It aims to tweak the design and introduce some sort of funding regime next year, according to the spokesperson.
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Economy minister Katherina Reiche on Monday promised “to adjust the tender design and areas so that we can offer a good investment framework.” Germany hosted a meeting of several North Sea nations including the UK and Norway this week, which resulted in a pledge to turn the region into “the world’s largest clean energy reservoir.”
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The federal association of offshore wind energy welcomed the decision to postpone this year’s auctions as everything else would have been “very risky,” policy head Hans Sohn said in a statement. His group called for two-sided contracts for difference, a subsidy scheme that also helped make this month’s offshore auction in the UK a success.
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The group said that without new regulatory support, even already awarded projects totaling up to 17 gigawatts are at risk of being canceled. It added that in light of the latest setbacks, Germany will only reach two thirds of its 2030 offshore wind expansion goal.
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