Offshore wind energy has become common terminology in the overall drive for clean energy. The system generates electricity by utilizing wind turbines which have been installed in bodies of water. This can either be something such as a large lake, or, alternatively, the ocean. The success of this method is based on the fact that higher wind speeds as well as more consistent wind patterns can be found offshore. Countries that are at the forefront of offshore wind energy is Denmark, China, the Netherlands as well as Germany.
The dynamic capabilities of offshore wind
As mentioned before, the benefits of this type of energy source is quite extensive. Not only does it offer a higher efficiency level, but it also has some vast environmental benefits as it is one of the least CO2-intensive forms of electricity generation. Keeping all the benefits that this system has to offer aside, there are also some challenges involved here.
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.
Not so successful auction bidding
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. Power Purchase Agreements or PPAs are long-term legal contracts. They are entered into between an electricity generator as well as a buyer. Electricity generators most often than not are renewable energy producers whilst the buyers are mostly corporations or utilities. Within these agreements are outlined the terms under which the purchases are to be made.
Future developments planned for Germany
BDEW cited rising project and capital costs due to geopolitical tensions and supply chain bottlenecks, as well as increasingly difficult-to-predict price and volume risks in the electricity market as additional reasons for the results. They followed aย sluggishย start to 2025 for the sector, during which Germany failed to connect a single new turbine to the grid, and industry groups pushed for the government to introduce improved auction measures to ensure more turbine additions.
As of June 30, 2025, the country had 9.2 gigawatts (GW) of installed offshore capacity, unchanged from December 31, 2024, but 1.9 GW of new turbines are under construction, according to consultancy Deutsche WindGuard, commissioned by the lobbies to gather data.
Germany’s expansion targets for its offshore wind energy have been defined within the German Offshore Wind Energy Act. According to this document, the installed capacity of the offshore wind turbines that are connected to the grid should be increased to at least 30 GW by the year 2030. And then to a further 40 GW by 2035 and finally to 70 GW by the year 2045. These minimum targets can change, as was recently seen by the Offshore Realization Agreement (November 2022). Here it was noted that the 2035 target is set to be exceeded and will then have 50 GW installed by 2035.
GCN.com/Reuters.