Joint statement on strengthening the economic and investment standard location
Berlin, November 10, 2025 – The German Offshore Wind Energy Association (BWO), the German Association of Energy and Water Industries (BDEW), VDMA Power Systems, and transmission system operators TenneT, Amprion, and 50Hertz are calling for a reform of the framework conditions for offshore wind energy. In a joint industry statement, they present concrete measures to enable successful offshore wind auctions. Without decisive political action, Germany risks losing further attractiveness as an investment location and suffering a loss of jobs and value creation in Germany.
“With clear rules and fair investment conditions, offshore wind energy will remain the backbone of the energy transition,” says BWO Managing Director Stefan Thimm, commenting on the industry statement. “The BWO, BDEW, VDMA, and grid operators are jointly demonstrating the potential for cost reductions in offshore wind energy. As a first step, we need to postpone the offshore wind tender round until the fourth quarter of 2026. During this time, the government should introduce a revised auction design with bilateral contracts for difference in order to significantly reduce the capital and electricity generation costs of offshore wind energy.”
Reform steps for the stable expansion of offshore wind energy
The joint demand by the BWO, BDEW, VDMA, and grid operators to postpone the tender round planned for summer 2026 to the fourth quarter of 2026 paves the way for further reform steps. This will allow two-sided contracts for difference (CfD)* to be introduced as a key financing instrument and supplemented by long-term power purchase agreements.
The key factor is the interaction of all the measures proposed in the industry statement with the introduction of CfDs. This will enable offshore wind energy to once again become a predictable and attractive investment area.
Using space efficiently and reducing risks
In addition, the offshore wind industry wants to improve the planning and use of offshore areas. The aim is to increase electricity yields and make more efficient use of the grid infrastructure. In future, the focus will be more on the electricity actually generated, not just on installed capacity. Lower plant density and better coordination between wind farm and grid planning will increase efficiency and reduce risks and costs for household and industrial customers.
BWO, BDEW, VDMA, and the grid operators are actively working with the relevant authorities and politicians to jointly design the efficient use of the areas and coordinate them optimally.
Further immediate measures for offshore wind in 2026
In addition to postponing the 2026 auctions, reforming the auction design, and land use, further immediate measures are intended to secure offshore wind expansion in 2026. The implementation of these measures will enable longer refinancing periods and reduce electricity generation costs, while at the same time creating planning security for investors.
The proposals include extending the permits for new offshore wind farms to 35 years and introducing a graduated penalty system for delays in operational readiness.
Source: BWO
