By Petra Sorge

Dec 5, 2025 (Bloomberg) — Germany will reduce the number of offshore wind auctions next year after the recent round attracted no bidders.

The government plans to offer only 2.5 to 5 gigawatts, down from the earlier target of up to 6 gigawatts, based on a bill approved by lawmakers on Thursday evening.

Germany has the largest offshore wind capacity in the European Union, but rising costs and uncertainty about future revenues have made developers hesitant to invest in new projects. The country is far behind its goal to more than triple offshore wind capacity by 2030.

According to a statement from the Economy Ministry, “Offshore wind is facing a tough market environment, both internationally and in Germany,” highlighting issues like “tight” supply chains and increasing costs.

An auction for North Sea wind in August ended without any bids, leading to calls for a major revamp of the auction process. Germany does not provide any subsidies to developers, which discouraged investors when power prices were high but is now turning them away.

Industry groups suggested postponing next year’s auctions to the fourth quarter to give the government time to implement a new system. They proposed introducing “contracts for difference,” which would lower risks for developers by ensuring a fixed price for their power.

Stefan Thimm, managing director of the offshore wind group BWO, warned that another auction without subsidies “could be empty and cause a slowdown in the supply chain,” which would pose “risks for local value creation and jobs.”

The Economy Ministry agreed that a thorough review of the current framework is necessary, including a reassessment of offshore wind targets.

However, the government decided to proceed with the 2026 auctions, as delaying them would be a “gamble” that would eliminate any opportunity for new capacity agreements until the end of the year, according to Social Democratic lawmaker Nina Scheer.

The administration plans to auction seabed areas on February 1, with additional rounds expected in June and August. They have begun consultations on redesigning the auctions, but any changes would not take effect until 2027.