The German Offshore Wind Energy Association (BWO) has called on the German government to introduce a legally regulated mechanism allowing the voluntary return and rapid re-tendering of offshore wind areas, warning that delays could jeopardize up to €50 billion in project and procurement volume.

According to the industry association, the proposal seeks to avoid long-term blockages of offshore wind sites and grid connection capacities in cases where awarded projects are unlikely to move forward. The mechanism would apply to offshore wind projects awarded between 2023 and 2025 that have not yet reached a final investment decision.

BWO Managing Director Stefan Thimm said the current offshore auction framework exposes developers to “significant risks” that companies can “barely influence,” particularly in the event of severe delays to grid connections.

“The German government has failed to include a buyback option for awarded projects in the offshore wind auction rules,” Thimm stated. “There is a risk that areas for up to 16 gigawatts of installed capacity will be blocked. A standstill in project development threatens the supply chain. Moreover, there will be a shortage of climate-friendly electricity for the economy and society.”

The association warned that billion-euro projects with no realistic prospect of being built could damage the offshore wind supply chain and Germany’s industrial base if no corrective mechanism is introduced quickly.

Up to 16 GW could be affected

The BWO proposal covers projects from the 2023-2025 offshore wind auction rounds. Of the 17.8 GW awarded during that period across 14 offshore wind sites, around 16 GW would fall under the proposed transitional arrangement.

Based on estimated investments of approximately €3 billion per gigawatt on the wind farm side, the association calculates that around €50 billion in project and procurement volume is at stake, excluding additional grid infrastructure costs.

The auctions for those projects generated at least €16.6 billion in awards. However, the German Federal Network Agency does not publish final bid amounts for centrally pre-investigated areas.

Four-week deadline for voluntary returns

Under the proposal, companies would be able to voluntarily return awarded offshore wind areas within four weeks after the legal basis enters into force.

BWO argues that an early and clearly defined deadline is necessary to provide rapid certainty for expansion planning, grid development and industrial supply chains. The association says earlier clarity would reduce the risks of prolonged delays and uncertainty for manufacturers and infrastructure providers.

Returned areas would then be rapidly re-tendered under the new auction design expected from 2027 onward, potentially through special tenders outside regular auction rounds.

The aim, according to the association, is to minimize the gap between the return and reassignment of sites so that grid connection capacities and project areas can quickly return to a viable development pathway.

Proposal includes competition safeguards

The proposed mechanism also includes several safeguards intended to preserve competition and prevent strategic behavior by developers.

Companies returning sites would not be allowed to bid again for the same areas. In addition, developers would be required to transfer existing preliminary studies, technical findings and project data to the authorities to accelerate future tendering and project development processes.

The proposal further suggests limiting the number of successful awards per bidder in new tender rounds to avoid excessive market concentration during the transitional period.

Grid connection deadlines would be adjusted

BWO is also calling for implementation and grid connection deadlines to be revised in coordination with the Federal Network Agency, the Federal Maritime and Hydrographic Agency (BSH), transmission system operators and the German government.

The association argues that newly awarded developers should not face structural disadvantages linked to existing grid connection schedules. It also stressed the importance of avoiding situations in which already planned grid infrastructure remains unused for extended periods.

No refund of environmental payment component

Under the proposal, developers voluntarily returning projects would not receive refunds for the first payment component linked to the negative bidding mechanism under Section 58 of Germany’s Offshore Wind Energy Act (WindSeeG).

This payment — equal to 10% of the negative bid component and intended for marine nature conservation, fisheries and transformation measures — would remain payable to preserve the binding nature and credibility of the auction system.

However, BWO proposes that bid bonds or security deposits should be fully refunded if companies return projects early and cooperate in damage mitigation efforts, including handing over all relevant project data and studies.

According to the association, the reimbursement would serve as an incentive for early disclosure of non-viable projects, helping authorities reallocate sites faster and reduce delays across the offshore wind expansion pipeline.