Released December 02, 2025 | GALWAY, IRELAND
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)
Summary
Some of Europe's leading offshore wind auctions, which are designed to support the increased rollout of offshore windfarms, have come under fire in the U.K., Germany and the Netherlands. Industry groups and leading developers are looking for change after recent auctions failed to attract any bidders.
No Bids in Recent Offshore Auctions
A number of Europe's leading offshore wind auctions in the U.K., Germany and the Netherlands are being called into question after some failed to attract any bids in their latest rounds.
Failure to Launch
The auctions, which are designed by governments to promote faster expansion of offshore wind, have suffered notable failures in recent weeks and months with many industry groups and developers calling for change and more financial support. Recent auctions in Germany and the Netherlands failed to attract any bidders while the U.K.'s latest funding for its next auction has been branded as too low for the country to hit its offshore targets.
No Bids in Germany
Groups representing the German offshore wind industry groups and transmission system operators have demanded changes to the current system which is deterring investment and stalling the rollout of offshore wind. It comes after Germany's latest wind auction in August failed to receive a single bid on up to 2.5 gigawatts (GW) of capacity across two sites. In a joint letter, associations and grid operators called on the government for urgent regulatory change or face the country becoming less attractive for investment than other global locations. "With clear rules and fair investment conditions, offshore wind energy will remain the backbone of the energy transition," said BWO managing director Stefan Thimm. "The BWO, the BDEW, the VDMA, and the grid operators are jointly demonstrating the cost-reduction potential of offshore wind energy. As a first step, we need to postpone the offshore wind tender round to the fourth quarter of 2026. During this time, the government should introduce a revised auction design with bilateral Contracts for Difference (CFDs) in order to significantly reduce the capital and electricity generation costs of offshore wind energy."
U.K. Funding Too Low
German energy major RWE (Essen) lashed out recently at the U.K.'s funding of £900 million (US$1.18 billion) in support for the country's seventh offshore wind auction as "too low," claiming only a fraction of eligible projects would benefit. Chief Financial Officer Michael Muller called the budget "incomprehensible and disappointing." He added: "It is far from sufficient to realise the urgently needed expansion of new offshore wind capacity to the extent required. However, the U.K. government has the option of increasing the budget once all bids have been submitted. This would give it the opportunity to mobilise massive investment in the U.K. energy sector, which could both strengthen energy supply and stimulate economic growth." In 2023, the previous U.K. government's auction for 5 GW of offshore capacity failed to attract any bidders. For additional information, see September 26, 2023, article - U.K. Fails to Attract Any Offshore Wind Bidders.
Offshore Wind in the U.K.
The U.K. has very ambitious plans for the offshore sector, already one of the world's largest. Offshore wind in the U.K. currently stands at 16.6 gigawatts (GW), which supplies almost 20% of the country's power,according to industry group WindEurope. However, the U.K government wants to reach 43-50 GW in less than five years. Earlier this year, data from industry association RenewableUK, showed that no offshore windfarms were commissioned in the country in 2024 but that there were six projects totalling 6.3 GW undergoing "major offshore installation activities." WindEurope has also criticised the offshore wind funding for the next auction, known as Allocation Round 7 (AR7), claiming that it would buy only 5- 6 GW of capacity. "They have only this auction and the one next year to deliver that [target]. The proposed budget would leave the U.K. falling well short," WindEurope said.
Netherlands Needs to Jumpstart Wind Auction
The most recent offshore wind auction in the Netherlands received zero bids. The Netherlands Enterprise Agency (RVO) confirmed the disappointing results for the 1-GW Nederwiek I-A site in the North Sea but also admitted that the results were unsurprising due to changes taking place in the sector. The auction was not helped by a lack of government funding nor a decision to cut the auction site from 2 GW in size to 1 GW. "The sustainability of Dutch industry, among others, is lagging behind," RVO stated. "This has made it more difficult for wind farm developers to conclude long-term electricity contracts before the construction of a wind farm starts. This has reduced their willingness to invest."
The Dutch government noted the failure and is planning a series of measures to improve conditions. Dutch Minister for Climate and Green Growth Sophie Hermans wrote: "Today the tender for the Nederwiek I-A wind site has closed. No applications have been submitted. This confirms that we have entered a market situation in which government support is crucial to prevent offshore wind development from stalling. European market conditions have now changed considerably." In 2026, the government will issue permits for 2 GW of offshore wind energy capacity as well as offer US$1.1 billion in financial support. The next auction will also use a Contracts for Difference (CFD) process, which will guarantee a minimum price for the generated electricity.
Key Takeaways
- Offshore wind auction reform and funding boost called for in Germany, Netherlands and U.K..
- Recent German and Dutch offshore wind auctions fail to attract a single bidder
- U.K. will not hit hugely ambitious 50 GW offshore wind target without more projects and a significant funding boost
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