Zero Bids in German Tender; UK Launches 7th CfD Round; Japan Designates New Offshore Wind Sites; French €11Bn Subsidy Scheme Approved
This week, on offshoreWIND.biz: While the German government did not receive any bids in the country's latest offshore wind tender, the UK launched a new allocation round for Contracts for Difference (CfD), Japan earmarked new offshore wind sites that will be auctioned off, and France got EU go-ahead for an EUR 11 billion support scheme for three new floating wind farms. More in our recap 👇
Germany’s 2.5 GW Offshore Wind Tender Fails to Attract Bids
Germany’s latest 2.5 GW offshore wind auction failed to attract any bids, leading the German Offshore Wind Energy Association (BWO) to call for a fundamental overhaul of the auction design.
The auction, which ended on 1 August without an award, covered two sites, N-10.1 and N-10.2. A total capacity of 2.5 GW was planned to be installed on the two sites, enough to supply nearly all households in Cologne, according to the German Federal Maritime and Hydrographic Agency (BSH).
“The industry has been warning for years against burdening companies with too many risks. However, the legal requirements no longer take into account the framework for investments in offshore wind projects in Germany. The current auction design forces developers to bear risks beyond their control without any protection,” said Stefan Thimm, Managing Director of BWO.
Thimm also added that the German offshore wind market is currently not attractive to investors, resulting in missed opportunities for value creation and job growth in Germany and across Europe.
UK’s Seventh CfD Allocation Round Launched
The UK government has launched this year’s Contracts for Difference (CfD) Allocation Round 7 (AR7), with the application window open until 27 August.
The CfD and its predecessor investment contracts have already delivered 10 GW of renewable capacity, with a further 23 GW contracted to become operational by 2030.
AR7 will run to one of five potential timeline scenarios depending on whether there are any appeals following assessment of the submitted applications.
Some of the changes in this year’s CfD include longer 20-year contracts that provide greater financial certainty for developers and investors, as well as earlier eligibility for projects still in the planning stages, according to the Offshore Wind Growth Partnership.
AR7 also includes specific support measures like the Clean Industry Bonus, which encourages developers to invest in UK-based suppliers.
The budget is GBP 20.1 million per GW of capacity applying for a Clean Industry Bonus, with a total budget of over GBP 544 million.
Japan Designates New Sites Offshore Hokkaido for Wind Auctions
Japan’s Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) have designated two areas off the southern coast of Hokkaido as promotion zones for the country’s upcoming offshore wind auctions.
The areas, one off the coast of Matsumae and one off the coast of Hiyama, were designated as promotion zones on 30 July.
Initially identified as promising zones in May 2023, the areas have since undergone formal discussions, resulting in consensus being reached for Matsumae in July 2023 and for Hiyama in March 2025.
A final public inspection period was conducted from 25 June to 9 July, during which no objections were raised, leading to the formal designation.
Japan aims to have 10 GW of offshore wind capacity by 2030 and 30-45 GW by 2040, including floating wind, as part of its target to reach net-zero emissions by 2050.
Recently, the Japanese government passed a bill that enables offshore wind projects to be built in the country’s Exclusive Economic Zone (EEZ), beyond the 22-kilometre line of Japan’s territorial waters.
EU Approves EUR 11 Billion French Plan for 1.5 GW Floating Offshore Wind Farms
The European Commission has approved an EUR 11 billion French scheme to support the construction and operation of three floating offshore wind farms with a total generating capacity of 1.5 GW.
The 20-year scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) and is said to contribute to France meeting its 2030 renewable energy targets.
The aid will be granted on the basis of a bidding process, which will be organised to select one beneficiary per offshore zone. Resilience has been included as a tender prequalification and award criterion in order to diversify wind turbine and main specific component supply chains to reduce dependency on imports from China, said the European Commission.
The support will be provided as direct price support, through two-way Contracts for Difference (CfD), awarded via a competitive bidding process.
The measure will support the development of three floating offshore wind farms: one located in the sea off the coast of South Brittany and two others in the Mediterranean Sea.
Each wind farm is expected to have a capacity of approximately 500 MW and to generate 2.2 TWh, equivalent to the annual consumption of 450,000 French households.
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1moHello everyone!!! What a development curve we see in offshore wind power plants!! That goes so fast for ten years there was next to no revival in offshore wind power as it is happening now!! It is completely under just Thanks Kjell Sundberg Northern Sweden