Press Release:

European offshore wind cooperation significantly increases electricity yields and reduces costs

Berlin, January 26, 2026. A new study by the Fraunhofer Institute for Wind Energy Systems (IWES), commissioned by the German Offshore Wind Energy Association (BWO) and the German Association of Energy and Water Industries (BDEW), published on the occasion of the North Sea Summit in Hamburg, shows that if offshore wind farms in the Danish and Swedish Exclusive Economic Zones (EEZ) were directly connected to the German electricity grid, the system costs of offshore wind energy could be reduced by several billion euros compared to expansion solely in the German North and Baltic Seas. At the same time, electricity yields could increase by up to 13 percent. This requires cross-border cooperation on land use and grid connection.

Scientists at Fraunhofer IWES have conducted the first comprehensive calculation of the macroeconomic effects of cross-border offshore wind energy planning compared to a purely national expansion path. In addition to electricity yields, the analysis also considers system costs, including grid expansion, shadowing effects, and the impact on security of supply.

"The expansion of offshore wind energy is a key pillar of energy supply in Germany and Europe," he says. Hans Sohn, Head of Policy and Communications at BWO. “The study shows how the legally mandated target of 70 gigawatts of offshore wind by 2045 can be achieved much more cost-effectively. Offshore wind farms in Denmark and Sweden that are directly connected to the German electricity grid – so-called radial connections – increase yields, reduce system costs and make the electricity system more robust.”

Cross-border planning increases efficiency

The study focuses on comparing a full deployment of 70 gigawatts of offshore wind power within Germany's Exclusive Economic Zone (EEZ) with scenarios in which up to 20 gigawatts of this capacity are built in neighboring countries but directly connected to the German electricity grid. These capacities should continue to be counted towards the national expansion target.

Spatial dispersal reduces the density of offshore wind farms in the German EEZ. Shading effects in the German Bight decrease, leading to higher full-load hours and increased electricity yields for all offshore wind farms in the North Sea region. At the same time, the overall economic costs of offshore wind expansion are reduced – including the costs for grid connection and grid expansion.

Higher full-load hours, lower costs, greater security of supply

The study shows that radial connections of offshore wind farms in neighboring countries offer several systemic advantages. The offshore wind zones in Denmark have particularly productive wind sites. Connecting them to the German electricity grid increases the average full-load hours of the "German" offshore wind portfolio.

Improved wind conditions also lead to lower specific costs per megawatt-hour generated. The analysis shows up to 13 percent higher electricity yield with up to 11 percent lower costs (in euros per megawatt-hour, including grid connection).

Furthermore, the broader geographical distribution of wind energy generation in the North and Baltic Seas strengthens security of supply and provides additional feed-in during periods of lower wind in Germany.

European cooperation as a strategic lever

From the BWO's perspective, the study's findings underscore the importance of closer and more binding cooperation among the North Sea coastal states. Cross-border planning opens up new opportunities for a cost-efficient, grid-supporting, and resilient expansion of offshore wind energy.

"It is positive that the federal government has already agreed on this approach in its coalition agreement," he says. Hans Sohn“The planned closer cooperation with the North Sea coastal states and the development of production-optimized areas are exactly the right direction. The BWO expressly supports these efforts and hopes for constructive talks between the Federal Government and the neighboring states in order to jointly unlock this potential.”

This requires bilateral agreements that allow offshore wind areas in the Danish and Swedish Exclusive Economic Zones to be used if they are not needed there, and that these capacities continue to be counted towards the German expansion target.

Background to the study

The study “International Optimization of Full Load Hours in the German Bight – Cross-Border Radials” was carried out by Fraunhofer IWES on behalf of BWO and BDEW.

The short version of the Fraunhofer IWES study can be found here. The full report is scheduled for publication in February 2026.