German Offshore Wind Auction Attracts Zero Bids
An offshore wind auction in Germany ended without a single bid, showing that zero-subsidy contracts aren’t in demand with investors
The Federal Network Agency didn’t receive any bids for two areas in the North Sea, the German offshore wind group BWO said in a statement last Wednesday.
“The result is a clear signal: the German offshore wind market is currently not interesting for investors,” said Stefan Thimm, managing director of BWO. “The current auction design forces developers to bear risks beyond their control without any protection.”
The failed auction is the latest setback in Europe for offshore wind, which has seen its growth prospects slashed by precipitously rising costs in recent years. As developers prioritize profitability over growth, governments increasingly need to provide subsidies to stimulate investment.
That’s a reversal from recent years, when offshore wind farm developers in the North Sea were ready to invest without government backing, including in Germany.
Two years ago, BP Plc and TotalEnergies SE agreed to pay billions of euros for the right to develop major projects.
But today, BP is pulling back from ‘renewable’ power as it focuses on the profit-driving ‘fossil fuel’ business, while Total undertakes a strategic review of its offshore wind business in Germany.
An earlier offshore auction in June already saw a drop in bidders.
It’s a similarly grim picture for solar, with dwindling investor appetite for unsubsidized solar parks as falling power prices erode profit margins. These developments pose a risk to the country’s target for expanding ‘renewable’ energy capacity.
Federal Minister for Economic Affairs and Energy Katherina Reiche said it would be “beneficial” for the regulator to look at adjusting the tender.
The areas will be re-tendered next year.
See more here gcaptain.com
Header image: Institute of Mechanical Engineers
Please Donate Below To Support Our Ongoing Work To Defend The Scientific Method
PRINCIPIA SCIENTIFIC INTERNATIONAL, legally registered in the UK as a company 
incorporated for charitable purposes. Head Office: 27 Old Gloucester Street, London WC1N 3AX.
Trackback from your site.
Aaron
| #
Another one bites the dust, seems everything the ptb does/wants fails or is failing
best laid plans of our narcissistic psychopathic overlords are doomed to failure judging by their past actions and results
not that they wont try to create chaos and death by their aspirations of grandeur
Reply