Tender Rules
The German government has approved a draft amendment to the Offshore Wind Energy Act (WindSeeG).
The changes include new rules for offshore wind tenders and measures affecting project development.
Under the proposed system, tenders for offshore wind areas will continue to start with a dynamic bidding process without an upper limit on the bid price.
If no project is awarded through this process, a Contract for Difference (CfD) auction will follow. The Bundesverband Windenergie Offshore (BWO) has criticised this two-stage approach and is calling for a CfD-only system.
The government will also examine whether the CfD award value, which determines the payment for electricity generated, should be indexed during the planning and construction period.
This would allow changes in project costs between the auction and commissioning to be taken into account. The BWO wants this to become a binding provision during the parliamentary process.
The draft would also reduce the size of most tender areas. These would generally have a capacity of 1,000 to 1,200 MW, compared with up to 2,000 MW under the current rules. Smaller areas are intended to support competition and allow more companies to participate.
The government also plans to change the compensation rules when grid connections are delayed. Compensation would be available from the 31st day of a delay, compared with a later point under the current rules.
Other proposed changes include a more binding adjustment of maximum bid values based on the expected output of individual areas. The standard project operating period would also be set at 35 years.
The draft does not include a temporary option to return projects awarded in the 2023 to 2025 tenders if a final investment decision has not yet been made. The BWO has called for such an option.
It estimates that the affected projects represent project and procurement volumes of up to €50 billion. Under its proposal, returned areas would be retendered and companies returning an area would not be allowed to bid for the same area again.
The German government aims for the amended WindSeeG to enter into force on 1 January 2027.
The draft will now go through the parliamentary process, where further changes may be made.
It is estimated that the affected projects represent project and procurement volumes of up to €50 billion. Under the BWO’s proposal, returned areas would be retendered, and companies that return an area would not be permitted to bid for it again.
The German government is aiming for the amended WindSeeG to enter into force on 1 January 2027.
The draft will now go through the parliamentary process, during which further changes may be made.
