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Zero-cent bids highlight offshore wind power's economic appeal

By: Chloe Emanuel 07/06/2024 Bundesnetzagentur

General Windfarms

The Bundesnetzagentur has revealed preliminary results from the ongoing offshore wind power auctions, marking a significant milestone for Germany's energy transition. For the second time, several zero-cent bids were submitted for each of the two North Sea sites up for auction, necessitating a dynamic bidding process.

"The auction results are promising for Germany's energy transition. It is encouraging to see companies not requiring funding to develop their offshore wind power projects," said Klaus Müller, President of the Bundesnetzagentur. "These zero-cent bids demonstrate the economic attractiveness of offshore wind power and contribute to reducing offshore transmission link costs for consumers."

The auction, which closed on June 3, 2024, featured two sites with a combined capacity of 2,500 MW. The N-11.2 site received nine bids for its 1,500 MW capacity, while the N-12.3 site attracted seven bids for its 1,000 MW capacity. All bidders submitted zero-cent bids per kilowatt hour, indicating no need for subsidies.

In such cases, the Offshore Wind Energy Act mandates a dynamic bidding process to select the highest-paying bidder. This online, software-based procedure helps determine how much each bidder is willing to pay, with most proceeds allocated to lowering electricity costs and a portion supporting marine conservation and sustainable fishing.

The Bundesnetzagentur plans to conduct the dynamic bidding starting on June 17, 2024, with up to 13 rounds per day. Bids generally start at €30,000 per MW. The process's duration and final bid amounts remain uncertain.
Last year's dynamic bidding awarded €12.6 billion for four sites with a total capacity of 7,000 MW. The Bundesnetzagentur will publish the successful bids on its website.

Further details and rules are available on the Bundesnetzagentur's website.

For more information about offshore wind farm projects across the globe, click here.

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Zero-cent bids highlight offshore wind power's economic appeal

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