Germany's Federal Network Agency (BNetzA) will introduce a so-called dynamic bidding process for the ongoing 7-GW offshore wind energy auction. The decision was taken after announcing the provisional results of the ongoing tenders for offshore wind energy. BNetzA noted that several "zero cent" bids were received for the four announced zones and pointed out that a dynamic bidding process will be necessary.

"The results of the tender are good news for the energy transition in Germany. It is gratifying that the companies do not need funding for the expansion of offshore wind energy. The zero-cent bids make it clear that offshore wind energy is economically attractive", says Klaus Müller , President of the Federal Network Agency. "In the dynamic bidding process, the bidders' willingness to pay is now queried. We are now planning to hold an electronic auction for the first time. The majority of the proceeds will benefit consumers directly by reducing electricity costs".

The bidding period for participation in the tenders for areas that were not centrally pre-examined ended on June 1st. In this tender, the Federal Network Agency put a total of four areas in the North Sea and Baltic Sea with a total output of 7,000 MW for offshore wind turbines up for tender.

Several bidders per area submitted bids with a bid value of zero cents per kilowatt hour and thus forego funding. For this case, the Offshore Wind Energy Act provides for a dynamic bidding process. The bidder with the highest willingness to pay for an area is awarded the contract.

Bidders' willingness to pay is determined using an online bidding process, also known as a dynamic bidding process. 90 percent of the proceeds flow into reducing electricity costs, 5 percent each into marine conservation and the promotion of environmentally friendly fishing.

Implementation of the award procedure planned in the near future

The aim of the dynamic bidding process is a competitive differentiation of the bids. The determination of who is entitled to a contract takes place in bidding rounds with increasing bid levels. The bidder with the highest willingness to pay for an area is awarded the contract.

The four dynamic bidding processes are carried out with software support. Several bidding rounds per day are planned. The Federal Network Agency plans to carry out the four procedures synchronously and to start them promptly. How long the proceedings will last cannot be predicted, nor can the amount of the surcharges.