Amendment to the Offshore Wind Energy Act – Draft Bill with a new auction design

Our initial assessment:  

Expansion targets with possible crediting of cross-border cooperation projects

The BMWE intends to maintain the existing statutory expansion targets, while allowing cross-border cooperation projects to be counted towards them. In order to achieve the 70 GW expansion target by 2045, an average of just under 3,000 MW would therefore have to be commissioned each year from 2035 onwards.

New two-stage auction design for both types of sites, with CfDs only in the second stage as a fallback:

The dynamic bidding procedure is now to apply to both types of sites in two stages: In the first stage, market-based implementation without support will be tendered. If no award is made at this stage, the second stage provides for support through two-sided contracts for difference as a hedging mechanism (two-sided CfDs). The draft bill refers in this regard to the provisions of the draft of the Renewable Energy Act (Erneuerbare-Energien-Gesetz; EEG 2027), which has also not yet been adopted. However, the draft bill does not provide for an indexation mechanism. As with the EEG 2027, these provisions are also subject to approval under state aid law by the European Commission.

New assessment criteria for pre-investigated sites:

The previous qualitative criteria are to be replaced by optional declarations regarding “assessment” criteria (resilience regarding permanent magnets, carbon footprint). These may reduce the relevant bid value and – in the event of support via CfDs – increase the value to be applied. Penalties are provided for in the event of non-compliance with declared assessment criteria.

Tightening of security mechanisms:

The security required to cover penalties in the event of non-compliance with statutory milestones is to be increased. According to the draft bill, the bid values submitted as part of the market-based allocation process are to be fully secured by an additional security to be provided. However, the explanatory memorandum indicates that the security is likely to cover only the first 10 per cent of the total amount payable.

Implementation of criteria determined by EU law:

For pre-investigated sites resilience in particular is to be introduced as a pre-qualification criterion. A pre-qualification criterion relating to cyber and data security is also envisaged for both types of sites. In the event of breaches of the pre-qualification requirements, the award may be withdrawn.

Extension of the operational lifespan:

The operational lifespan of offshore wind turbines is to be extended from the current 25 years to 35 years.

More efficient use of offshore grid infrastructure:

• 2-GW offshore grid connection systems: In future, grid connection is to be carried out increasingly via 2-GW systems. To this end, the removal of the so-called ‘2K criterion’ in Section 17d (1b) of the Energy Industry Act (Energiewirtschaftsgesetz) is envisaged.
• Annual tender volume and overplanting: Instead of the current 4,000 MW, the BSH is to be given greater flexibility from 2027 onwards through a tender volume corridor of between 2,000 and 4,800 MW. At the same time, the BSH is to retain the option of continuing to set area-specific overplanting rates of up to 20 per cent in the FEP, even though the legislator already recognises that an overplanting rate below 20 per cent is generally appropriate.
• Wake effects: The BMWE also sees no need for legislative action to reduce wake effects. Rather, the BSH is to examine appropriate measures as part of the next update of the FEP. These include, in particular, a reduction in power density in individual sites and, in some cases, the redrawing of the site boundaries. The aim is to achieve higher full-load hours and a more efficient use of offshore sites.

Offshore rescue infrastructure:

For the rescue infrastructure in areas of the German EEZ far from the coast – which has so far been largely unregulated – the draft bill provides for responsibility to be concentrated with the project developers. The BMWE hopes this will result in a seamless rescue chain and, at the same time, economically efficient structures in line with occupational health and safety requirements.   

The draft bill thus addresses several key levers for the further expansion of offshore wind – from the design of auction and funding schemes, through project security, to the more efficient use of areas and grid infrastructure.

It is expected that the industry will respond comprehensively to the proposal during the consultation process that has now begun, despite the short deadline for comments, as the draft bill does not yet include any provisions for projects that have already been awarded which could provide solutions amid massive grid delays and project challenges. The proposal is back on the Cabinet’s agenda on 26 August 2026.