Germany has made significant progress towards its renewable energy targets by awarding rights to build offshore wind electricity plants, raising over £10.7 billion (EUR 12.6 billion). The country aims to reach a target of 30 gigawatts of offshore wind capacity by 2030. In its maiden auction for wind power installations, the regulator Federal Network Agency announced the awarding of four sites with a combined planned generation capacity of 7,000 megawatts.

Three of the projects will be located on the German side of the North Sea, while one will be situated in the German Baltic Sea. The German Baltic Sea site received the highest winning offer, with Baltic Sea OFW O2-2 GmbH & Co. KG bidding nearly $2.33 million (EUR 2.07 million) per MW. North Sea OFW N12-1 GmbH & Co. KG secured the highest winning price for one of the North Sea sites, offering over $2.1 million (EUR 1.875 million) per MW. Another project received an offer of approximately $2.06 million (EUR 1.83 million) per MW from bp OFW Management 1 GmbH. The remaining site was awarded to bp OFW Management 3 GmbH with a winning offer of around $1.75 million (EUR 1.56 million). Each of the North Sea sites has a capacity of 2,000 MW, while the Baltic site has a capacity of 1,000 MW.

Following the successful bidding process, the winning bidders now have the right to undergo the planning approval procedure for constructing and operating offshore wind installations on their respective sites, as well as grid connection and the necessary capacity. The wind farms are expected to become operational by 2030.

Federal Network Agency president Klaus Mueller emphasized the attractiveness of investing in offshore wind energy in Germany and highlighted the high competition in offshore wind power. The auction process involved multiple rounds, with 72 rounds held for the Baltic site and 55, 64, and 65 rounds for the three North Sea projects.

Ninety percent of the proceeds from the auction will be utilized to lower power costs for consumers, while the remaining funds will be allocated to marine conservation and sustainable fishing initiatives. The contributions to lower electricity costs will be paid in equal annual installments over a period of 20 years to the transmission system operators responsible for connecting the offshore wind farms, beginning when the wind farms become operational from 2030 onwards.

Germany is committed to raising the share of renewables in its power mix to 80 percent by 2030, as outlined in the amended Renewables Energy Sources Act (EEG). The country has been making significant strides in renewable energy, with wind power leading the way. In 2022, wind accounted for 125.3 billion kilowatt hours (kWh) of the total electricity generation of 571.3 kWh in Germany. These developments align with Germany's efforts to phase out coal-fired power plants by 2038, and the closure of the nation's three remaining nuclear power plants on April 15, 2023.