BWO calls for a change of course in the use of offshore auction revenues
Berlin, June 24, 2025 – The German government plans to continue diverting portions of offshore wind auction revenues to the general budget in 2025 and 2026. A "transformation component" is to be included in the federal budget, without any specific connection to the energy transition. In addition, funds for marine conservation and fisheries are to be limited to €200 million, and their earmarking is to be weakened.
Stefan Thimm, Managing Director of the German Offshore Wind Energy Association, strongly criticizes this course:
"The auction design for offshore wind energy is no longer up-to-date. Politicians' greed for auction revenues for the federal budget misjudges market realities. Offshore wind energy doesn't need revenue maximization now, but rather a maximization of energy and industrial policy resilience. Therefore, we need auctions that rely on two-sided CfDs – in parallel with the current refinancing through long-term power purchase agreements."
The auction revenues, which were over 85 percent lower than in 2024, and the reduced participation of only two bidders, clearly demonstrate that investment costs have risen sharply, exacerbated by new overplanting rules. From the BWO's perspective, it is therefore irresponsible to maintain an auction system that prioritizes short-term budgetary effects instead of ensuring long-term viability and the urgently needed expansion of offshore wind energy.
The German Offshore Wind Energy Association demands:
- Contract for Difference (CfDs) as a resilience instrument to secure projects and reduce capital costs
- an auction design that feasibility and Value Added rewarded – instead of just the highest bidder
- earmarked reinvestment of auction proceeds in ports, production, skilled workers and research
PDF version of this press release
About the BWO
The Federal Association for Offshore Wind Energy (BWO) is the political lobby for the offshore wind industry in Germany. We pool the technical expertise of companies along the entire value chain, from manufacturers to developers and operators to offshore wind energy service providers. For politicians and authorities at federal and state level, the BWO is the central contact for all questions relating to offshore wind energy.