In a significant development for renewable energy in Germany, EnBW and TotalEnergies emerged as winners in the latest offshore wind auction organized by the German Federal Network Agency. The auction awarded a total of 2.5 GW of offshore wind capacity across two areas in the North Sea. This achievement underscores both companies' commitment to the energy transition and carbon reduction.

Details of the awarded concessions

TotalEnergies

TotalEnergies, through its subsidiary Offshore Wind One GmbH, secured the N-11.2 concession with a bid of approximately €1.305 per MW, totaling around €1.96 billion. This area is located about 120 kilometers northwest of the German island of Heligoland and covers an area of approximately 156 square kilometers. The N-11.2 concession will enable TotalEnergies to build a 3.5 GW offshore wind hub in the German North Sea, leveraging synergies with the 2 GW N-12.1 concession won last year.

Stéphane Michel, President of Gas Renewables and Power at TotalEnergies, stated, “Building upon the successful award of the N-12.1 concession in the German North Sea last year, the award of the N-11.2 site will enable TotalEnergies to establish a 3.5 GW offshore wind energy hub, building on the quality of both sites and taking advantage of the development and operational synergies between them.”

EnBW:

EnBW secured the N-12.3 concession with a capacity of 1 GW at a price of €1.065 million per MW, totaling €1.065 billion. EnBW plans to sell a substantial portion of the electricity generated by this wind farm to industrial customers through power purchase agreements (PPAs). This project aligns with EnBW's strategy to expand its renewable energy capacity to between 10 and 11.5 GW by 2030 and become a climate-neutral company by 2035.

Georg Stamatelopoulos, CEO of EnBW, affirmed, “Winning the auction represents another important milestone in the restructuring of our generation portfolio. We want to expand renewable energy capacity to between 10 and 11.5 GW by 2030 and be a climate-neutral company by 2035.”

Financial commitments and environmental contributions

Under the terms of the concessions, Offshore Wind One GmbH will pay the German Federal government €196 million by June 2025, which will be allocated to marine conservation and the promotion of sustainable fishing practices. Additionally, an annual contribution of €88 million will be made to the electricity transmission system operator responsible for connecting the project, over a period of 20 years starting from the commissioning of the site.

Stéphane Michel highlighted, “TotalEnergies is very pleased to contribute to Germany’s decarbonisation targets. These payments not only support marine conservation but also promote sustainable fishing, aligning with our environmental commitments.”

Project timelines and duration

The concessions awarded to TotalEnergies and EnBW have an initial duration of 25 years, extendable to 35 years. The wind farms are scheduled to begin operations in 2031, aligning with Germany's ambitious goals to increase renewable energy production and reduce carbon emissions.

Expansion of TotalEnergies' renewable portfolio

The victory in this auction reinforces TotalEnergies' strategy to expand its renewable energy portfolio. The company aims to achieve net zero emissions by 2050, with a robust mix of solar, onshore and offshore wind, and flexible assets such as combined cycle gas plants and energy storage. By the end of 2023, TotalEnergies' installed renewable electricity generation capacity was 22 GW, with a goal to increase this to 35 GW by 2025 and exceed 100 TWh of net electricity production by 2030.

Stéphane Michel commented, “This award marks a new step for the deployment of TotalEnergies Integrated Power strategy in Germany after the acquisition of Quadra Energy, one of the top 3 aggregators of renewable electricity production and of Kyon Energy, a prominent developer of battery storage solutions.”

Global offshore wind projects

TotalEnergies' offshore wind portfolio boasts a total capacity exceeding 16 GW, with projects in various countries including the United Kingdom, South Korea, Taiwan, France, the United States, and Germany. These projects, predominantly featuring bottom-fixed technology, are well-positioned to leverage the stable seabed conditions found in many offshore locations.

Industry impact and future prospects

TotalEnergies' continued investment in offshore wind projects reflects its confidence in the future of renewable energy. The company’s ability to secure major concessions in competitive auctions demonstrates its strong positioning and commitment to sustainable energy solutions. As TotalEnergies progresses with its projects in the German North Sea and beyond, it is poised to play a pivotal role in the global transition to renewable energy.

Stéphane Michel concluded, “We are committed to building a world-class, cost-competitive renewable energy portfolio to deliver clean, firm power to our customers. This achievement in Germany is a crucial step in our journey towards a sustainable future.”

The awarding of the N-11.2 and N-12.3 concessions to TotalEnergies and EnBW respectively, not only expands their renewable energy portfolios but also significantly contributes to Germany's energy transition goals. With strategic locations, substantial financial commitments, and clear timelines, these projects represent important milestones on the path to a sustainable energy future.