Offshore wind energy: Government draft meets with strong criticism
On 2 November 2026, the Committee on Economic Affairs and Energy of the Deutscher Bundestag (German Federal Parliament) discussed the Federal Government’s bill to optimise and safeguard the expansion of offshore wind energy. The public hearing took place at the Paul-Löbe-Haus. The government draft has been published as Bundestagsdrucksache 21/8238 (German Federal Parliament printed paper 21/8238).
The experts heard raised significant objections to the proposed amendments. Their criticism focused in particular on the planned introduction of two-sided contracts for difference (CfDs).
70-gigawatt expansion target remains in place
The bill retains the statutory target of increasing the installed capacity of offshore wind turbines to at least 70 gigawatts by 2045. However, the procedure for awarding the corresponding sites is to be amended.
In addition, the standard operating term for newly constructed offshore wind farms is to be extended from 25 to 35 years. The planned reform therefore affects not only the tender conditions but also the intended operating period of future installations.
Tenders to be conducted in two stages
A two-stage model is envisaged for future tenders:
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The first stage is intended to determine whether a company is prepared to construct the relevant offshore wind farm without government support.
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If this stage is unsuccessful, the second stage will invite bids for the price under a two-sided contract for difference.
As a precaution, the draft sets a maximum value of 9.487 cents per kilowatt-hour for the contract for difference. Under the proposed model, support through such a contract would therefore only be considered if no bid without subsidies is successful in the first tender stage.
Contracts for difference as a key point of contention
The planned contracts for difference were a major focus of the hearing. The government draft provides for them as a safeguard if an offshore site cannot be awarded without financial support.
At the hearing, the Deutsche Industrie- und Handelskammer opposed government support for offshore installations as a matter of principle and advocated expansion based solely on market mechanisms. Its position was therefore directed not merely against individual aspects of the proposed model but against support for such installations as such.
The differing statements show that both the basic structure of the tender procedure and the proposed support framework remain contentious. The hearing did not involve a final decision on the bill.
Bundesrat’s objections to the tender model
The Bundesrat (Federal Council) also rejects the two-stage tender procedure envisaged in the government draft. It argues that there were no bidders in offshore tenders in 2025 and 2026.
In addition, the Bundesrat is calling for an option to voluntarily relinquish sites that have already been awarded if they cannot be developed economically. This demand concerns sites for which an award has already been made but whose development proves not to be economically viable.
Onshore grid connection to be secured
The Bundesrat is also calling for the ongoing legislative process to ensure comprehensive onshore grid connections for the planned 70 gigawatts of offshore wind energy capacity. Its proposed amendments therefore relate not only to the award process and support for wind farms but also to the requirements for integrating them into the electricity grid.
A representative of a transmission system operator gave evidence at the hearing. The involvement of the grid operators highlighted the importance of grid connections for achieving the statutory expansion targets.
Next steps in the legislative process
The public hearing formed part of the parliamentary deliberations on the government draft. The positions expressed there and the Bundesrat’s demands concern key elements of the proposed regulatory model, particularly the two-stage tender procedure, the use of contracts for difference, the economic viability of sites already awarded and the onshore grid connection.
No final decision has yet been made on the proposed amendments. The final content of the legislation will depend on the further course of the parliamentary process.
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