- TotalEnergies and EnBW won a $3.2 billion German auction for 2.5 GW of offshore wind capacity.
- TotalEnergies bid €1.305 million/MW for a 1.5 GW site; EnBW bid €1.065 million/MW for a 1.0 GW site.
- Operation starts in 2031, with prices down 33% from last year.
TotalEnergies and EnBW secured a combined 2.5-gigawatt (GW) offshore wind auction in Germany’s North Sea for $3.2 billion, Germany’s Federal Network Agency announced on Friday. The auction, which saw prices drop significantly from last year, highlights the growing appeal of Germany’s offshore wind projects.
The auction covered two plots about 120 kilometres (75 miles) northwest of Heligoland. TotalEnergies won the more significant 1.5 GW site with a bid of €1.305 million per megawatt (MW). EnBW claimed the 1.0 GW site at €1.065 million per MW. The average strike price for the auction was roughly €1.2 million per MW, a 33% drop from the previous year’s average.
Klaus Mueller, president of the Federal Network Agency, commented, “The results highlight the strong appeal of investing in Germany’s offshore wind sector. These auctions mark a significant step towards our offshore wind expansion goals.”
TotalEnergies continues its push into sizeable offshore wind projects in Germany, Europe’s largest economy. This follows a similar auction last year, where it partnered with BP to secure a wind site. This move underscores a broader trend among big oil companies diversifying into renewable energy investments.
EnBW’s successful bid demonstrates rising interest and competition in renewable energy projects within Germany. The utility aims to expand its renewable energy portfolio and reduce its reliance on fossil fuels.
RWE, Germany’s largest electricity provider, initially partnered with TotalEnergies for the offshore sites. However, RWE exited the consortium, citing incompatible bid levels with its investment criteria. An RWE spokesperson noted that the company would focus on its 1.6 GW North Sea cluster, where it has already made a final investment decision.
TotalEnergies and EnBW plan to start operating the new wind farms by 2031. These projects will be crucial in Germany’s efforts to boost its offshore wind capacity, contributing significantly to its renewable energy targets and transition.
The considerable price drop in this year’s auction compared to last year signals a more competitive market. Developers are willing to invest at lower strike prices to secure prime offshore wind locations. This trend may speed up the development of offshore wind infrastructure and support Germany’s shift towards a sustainable energy system.
($1 = 0.9366 euros)