Germany’s Federal Network Agency will introduce a so-called dynamic bidding process for the ongoing 7-GW offshore wind energy auction as several zero-cent bids have been submitted for all four areas in the North Sea and the Baltic Sea that are being tendered.
“The results of the tender are good news for the energy transition in Germany. It is gratifying that the companies do not require subsidies for the expansion of offshore wind energy. The zero-cent bids clearly demonstrate that offshore wind energy is economically attractive,” said Klaus Mueller, President of the Federal Network Agency.
The bidding period for the tenders for areas that have not been pre-examined by the Federal Maritime and Hydrographic Agency (BSH) ended on June 1 with several zero-cent offers submitted for each of the four areas. In this case, the power regulator is required to launch a dynamic bidding process to determine the bidder with the highest willingness to pay for an area and award the area to them.
The Federal Network Agency plans to conduct the four procedures simultaneously and start them promptly. The duration of the procedures cannot be predicted, nor can the amount of the award values.
Developers are competing for three of the areas, each with a potential capacity of 2 GW, in the North Sea, and one area with the potential to host 1 GW of wind turbines in the Baltic Sea.