Yet Germany’s offshore wind energy sector is at a crossroads. The recent collapse of the government’s efforts to get bids for key tenders underscores these issues. Economy Minister Katharina Reiche voiced serious concerns regarding the future of this crucial energy segment, which is vital for the country’s transition to renewable energy. Last month, authorities announced their latest tenders for offshore wind power plants. These plants will have record-breaking capacities of 2 gigawatts (GW) and 500 megawatts (MW), respectively, with a target commissioning date of 2030 and 2031.
The need to ramp up renewable energy is clear. Yet the absence of bids on these tenders is indicative of a worrying pattern in the offshore wind industry. At end June 2025 installed German offshore capacity is 9.2 GW, the same as on 31 December 2024. 9 GW of new turbines currently are still under construction. This disconnect has created a jarring divide between the current projects in the pipeline and the lack of new proposals.
Rising Costs and Geopolitical Tensions
The German Association of Energy and Water Industries (BDEW) cited increasing project and capital costs. They argue that this is the reason why no bids came in. Continuing global unrest and strained supply chains are the source of skyrocketing costs. All of these combine to create an environment where it becomes more difficult for developers to assess the feasibility of potential new projects. With zero new turbines currently set to come online in 2025, the need for a speedy resolution is paramount.
Reiche called for a complete rethinking of the circumstances under which such tenders should be awarded. She posed critical questions regarding the suitability of designated areas for development and whether potential risks for developers had been underestimated.
“The first question is: were the designated areas appropriate, or were potential risks for developers … underestimated? We need to look at this critically.” – Katharina Reiche
A Slow Start to 2025
Germany’s offshore wind industry has had an underwhelming start to 2025 so far, prompting a panic among industry stakeholders. This continued stagnation in new installations only holds us back further on our journey towards achieving our national climate goals. It also poses a grave threat to our energy security. With the Central Asian country’s ambitious targets for renewable energy, eliminating these obstacles is crucial.
In light of this stagnation in offshore wind capacity, it is even more vital to address these underlying issues that make it so hard to develop. Influential experts are calling for a more strategic approach to policy and support levers. Above all else, they want to continue their progress toward fulfilling Germany’s ambitious renewable energy goals.
Future Prospects
Looking forward, Germany will need to steer a very difficult course to breathe new life into the nation’s offshore wind industry. As geopolitical factors weigh in and increasing costs discourage developer confidence, smart solutions are more urgent than ever. Continued investment in infrastructure and supportive policies will be crucial for attracting future bids and fostering a sustainable energy transition.
