Germany sticks to negative bidding at kick-off of next 2.5GW offshore wind auction
Grids agency to hold uncapped 'dynamic bidding' procedure if several developers were to bid for zero support to build and operate North Sea sites
Germany’s federal grids agency (BNetzA) has started its latest offshore wind tender for 2.5GW of North Sea capacity, and once more is using a negative bidding component to possibly let developers pay for the right to build and operate wind projects that haven’t been pre-developed yet.
If there were to be several parties bidding for zero support, the agency would hold a so-called ‘dynamic bidding’ procedure, at which interested developers can offer uncapped amounts of money to get hold of the N-11.2 and N-12.3 sites – as is common in oil & gas tenders, but a relative novelty in offshore wind.
At an auction of 7GW of North Sea capacity last year, the winners Bp and TotalEnergies had pledged to pay the German state a combined €12.6bn ($13.6bn), an amount much criticised by large parts of the offshore wind industry which argues the payments will ultimately increase prices for power consumers.
Bids in Germany’s first auction for wind at sea this year can be handed in until 1 June 2024, for one 1.5GW and another 1GW site at about 120 km north-west of the island of Heligoland. The wind farms are slated to be operational in 2031.
Germany will provide the grid links to the sites, however.
The BNetzA said it will start tenders for a further 5.5GW across three pre-developed sites by 1 March 2024.