Germany's Economy Minister Katharina Reiche warned on Wednesday that flawed site selection and shifting market dynamics were undermining offshore wind tenders, as…
Germany's Economy Minister Katharina Reiche warned on Wednesday that flawed site selection and shifting market dynamics were undermining offshore wind tenders, as the country's latest offshore auctions received no bids.
Two August tenders for offshore wind energy plants, with volumes of 2,000 MW and 500 MW, and planned commissioning dates in 2031 and 2030, drew no bids for the first time ever on Wednesday, utility association BDEW said, citing the Federal Network Agency.
Reiche said the tendered area was riskier due to its geographical and geological conditions, located in deep waters where there could be erosion of foundations and highly challenging structural conditions.
"The first question is: Were the designated areas appropriate, or were potential risks for developers ... underestimated? We need to look at this critically," Reiche told a news conference in Berlin.
She said changing market conditions with customers no longer willing to uphold Power Purchase Agreements during periods of negative electricity prices and wanting to secure their electricity needs directly from the market instead, was another factor behind developers' reluctance.
The Federal Network Agency should review its tender design and consider UK-style reforms to safeguard Germany's offshore wind potential, she added.
Germany's network regulator was not immediately available
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