The German Federal Ministry for Economic Affairs and Energy (BMWE) has opened consultation with industry associations on the draft 2026 amendment to the Wind Energy at Sea Act (WindSeeG). The draft retains the target of at least 70 GW of offshore wind capacity by 2045 and proposes annual tenders of between 2,000 MW and 4,800 MW, the introduction of two-sided contracts for difference (CfDs) and an increase in the standard operating period for new offshore wind farms from 25 to 35 years. The German Offshore Wind Energy Foundation (BWO) welcomes several key elements but says further changes are needed to the tender design.
With the draft law on optimising and securing the expansion of offshore wind energy, the BMWE has now presented its proposed reform of the WindSeeG. The BWO says reform of the tender design is urgently needed given difficult investment conditions and the lack of bids in recent tenders.
CfDs welcomed, but should not be a fallback option
The BWO welcomes the proposal to introduce two-sided CfDs as a risk-mitigation instrument for offshore wind. The contracts could provide investors with greater long-term planning certainty and help restore confidence in the German market.
However, the BWO is critical of the proposed two-stage tender model, under which a CfD would only apply if no company is prepared to develop a project without risk protection. The association says risk protection should not become a last-resort option.
The BWO says the CfD proposal is a step in the right direction, but that protection should be reliably available from the outset rather than only becoming available when companies are unwilling to take on the full market risk. Offshore wind farms involve multi-billion-euro investments and long development periods, meaning the tender design should make risks manageable rather than favouring companies prepared to accept the highest level of risk.
70 GW target and tender schedule
The BWO also welcomes the draft's retention of the target of at least 70 GW of offshore wind capacity by 2045. The proposed annual tender schedule of between 2,000 MW and 4,800 MW would provide greater visibility for investment. The draft would also allow cross-border cooperation projects.
According to the BWO, a predictable long-term expansion programme is important for manufacturers, ports, vessels and suppliers to build capacity and secure investments. The proposed increase in the standard operating period for new offshore wind farms from 25 to 35 years is also welcomed.
BWO calls for return mechanism
The BWO says the draft does not provide a sufficient solution for projects awarded contracts between 2023 and 2025. In May, the association proposed a one-off mechanism allowing developers to return their awards.
Under the proposal, companies returning an award would lose payments already made, be excluded from the subsequent re-tender and be required to make the results of their preliminary investigations available. In return, the mechanism would provide greater clarity and allow a new investor to take over the project.
The BWO argues that projects worth billions of euros remaining uncertain for years could result in valuable time being lost. An orderly return followed by a rapid re-tender would be preferable to projects ultimately failing after years of uncertainty.
