Antoine Becker
2023 – New dynamics in the market: TotalEnergies enters offshore wind with billion-dollar bids
When TotalEnergies acquired two sites in an offshore auction in 2023, the surprise large. MD Offshore Wind Germany Antoine Becker explains how this decision came about, what's important now – and what he hopes for sustainable market development.
The 2023 auction was a bombshell: TotalEnergies secured several sites with bids worth billions. What was it like entering the offshore wind market on such a large scale?
"Yes, when I recall the press articles at the time, it was a big surprise for the German industry. TotalEnergies aims to increase electricity generation from renewable energies to over 100 TWh. As Europe's largest electricity market, Germany will play a key role in this. Entering the German offshore wind market in 2023 was therefore a natural choice. As the person responsible for the expansion of offshore wind in Germany, I was and remain very proud to be part of such an adventure!
The 2023 auctions have marked a new price level. How do you assess the impact of these bids on the market?
"The auctions assigned the correct market value to the offshore concessions in German waters. It was a dynamic auction process—fast, transparent, non-discriminatory, and legally binding. These features were crucial because the roles and responsibilities were clearly separated: The government created an impartial and transparent legal framework to achieve its policy goals. The developers focused on economic and industrial development and financed the grid through lease fees.
In your opinion, what are the biggest challenges in successfully implementing these projects?
"Recent delays in the expansion of the electricity grid demonstrate that additional flexibility and a different risk allocation are needed to transform Germany's ambitious offshore wind energy goals into a true industrial success. 20 GW of offshore wind capacity is planned to be installed over the next 60 years, while 15 GW has been installed in the last 10 years! We therefore need a realistic approach to project capacity and timing, with the construction period adjusted to the size of the wind farm."
What do you think is the biggest challenge for the industry?
"I expect 2031 to 2033 GW of additional capacity to come online in this country between 7 and 9. The associated pressure on suppliers and available resources make achieving this target unrealistic. We believe that smoothing capacity expansion to 4 to 5 GW per year would ensure viable projects and a sustainable supply chain."
What 2023 In addition was important:
- 3,8 GW of new offshore wind capacity will be connected to the grid in the EU
- The 257 MW wind farm Arcadis Ost 1 will be fully commissioned in the German Baltic Sea
- Tenders: 8.800 MW to BP, EnBW, TotalEnergies and RWE
- More than 13 billion euros total auction revenue
- Area development plan (BFO planning): implementation of increased expansion targets
- Vattenfall later exercises its right of entry for the N-6.6 area, which is later developed under the name Nordlicht II