The German Federal Network Agency has launched a tender process for two areas in the North Sea with a combined offshore wind capacity of 2,500 MW.

The two offshore wind farm zones with a capacity of 1,500 MW and 1,000 MW are located in the North Sea, approximately 120 km northwest of Helgoland. Based on the Federal Network Agency, the wind farms are scheduled to be commissioned in 2031.

According to the communication from the Federal Network Agency, there is no preliminary state investigation of the areas, in which, for example, the marine environment, subsoil, wind and oceanographic conditions are analyzed. Therefore, the successful bidders will have to carry out the investigations on their own.

In addition to the tenders announced this week, the Federal Network Agency will launch further tenders for offshore wind energy before March 1, 2024. These tenders concern three areas that have been centrally vetted by the Federal Maritime and Hydrographic Agency with a total capacity of 5,500 MW .

Dynamic process with multiple zero-cent bids

The Federal Network Agency also noted that the bidder who reports the lowest funding requirement for a wind farm at the site will be awarded the contract. If multiple bidders forgo financing for an area and submit bids with a bid value of zero cents per kilowatt hour, the so-called dynamic bidding procedure will be used, as in 2023.

The bidder with the highest willingness to pay will be awarded the contract. The winner is determined in bidding rounds with increasing bid levels. In tenders for areas not previously examined centrally in 2023, the implementation of the dynamic bidding process generated total revenues of EUR 12.6 billion. 90 percent of the revenue is earmarked for reducing electricity costs.

Until June 1, 2024

Tenders must be submitted by June 1, 2024, the Federal Network Agency notes. After checking the bids, conducting the award process and, if applicable, conducting the dynamic bidding process, the bidders are informed of the decision and the bidding results are published.

The successful bidder will have the right to apply to the responsible Federal Maritime and Hydrographic Agency for planning approval for the development of the area with an offshore wind farm. It will also have the right to connect the wind farm to be built to the power grid to transport the electricity generated by the wind turbines to the sea.