Energy company TotalEnergies is seeking to quit a major offshore wind energy project in Germany for which it offered to pay six billion euros in a 2023 state auction, arguing that slow grid connections and a deteriorating economic environment have triggered the decision, public broadcaster NDR and newspaper Süddeutsche Zeitung (SZ) reported after a joint investigation. According to the reports, the French energy company recently offered unsuccessful competitors the opportunity to buy TotalEnergies' rights to build wind turbines with a total capacity of 7.5 gigawatts (GW). Germany aims to build 30 GW of offshore wind energy capacity by 2030, up from just under 10 GW at the end of 2025. NDR and the Süddeutsche Zeitung cite an internal document in which TotalEnergies said several projects from auction rounds between 2023 and 2025 “probably cannot be implemented.” The company told the outlets that it still aims to develop the areas but is also exploring options for dealing with project delays. The mood in Germany’s offshore wind industry and elsewhere in Europe has shifted markedly in recent years. While bidders in offshore auctions in 2023 were ready to pay billions of euros for the right to implement new projects, a subsequent auction round in 2025 failed to attract a single bid. According to offshore wind industry association BWO, the meagre expansion of less than 1 GW annually since 2020 was mainly triggered by a spike in investment and capital costs. TotalEnergies surprised observers with its sizeable bid in 2023, which would have made the fossil fuel heavyweight a major player in Germany’s renewable energy sector. So far, the company has paid 800 million euros of its total commitment and lodged a security deposit of 750 million euros, reported NDR and SZ. It now hopes to recover this deposit along with a discount from its successor for surveying the auctioned areas, the reports said. Grid operator Tennet said it is alarmed by a possible withdrawal. The German economy ministry told the outlets that bidders have no legal right to withdraw from an auctioned project, adding that it expects the plans to go ahead. However, the final investment decision is only required once an official grid connection date has been announced, which has not yet occurred, the reports said. The auction proceeds have already been earmarked for financing grid fee reductions to cap electricity prices and fund grid expansion. If no payments are made, this could cause further delays in Germany's grid development, wrote NDR and SZ. According to the reports, energy company BP, which also won a successful multi-billion euro bid in 2023, could seek a similar opt-out. After transferring its offshore wind activities into a subsidiary in 2025, the new company is said to be scaling back and ultimately planning to shut down its offices in Berlin and Hamburg, NDR and Süddeutsche Zeitung reported. The outlets said that offshore wind power industry association BWO is working on a compromise proposal that would allow successful bidders to withdraw from a project but bar them from re-bidding for the same areas – and require companies to pass on their surveying data to the Federal Network Agency (BNetzA). BWO member companies fear that a protracted legal battle over the projects could disrupt demand and undermine “industrial continuity” and “credibility” for Germany’s offshore wind industry.
Major offshore wind projects in Germany at stake as companies seek opt-out – media report
Energy company TotalEnergies is seeking to quit a major offshore wind energy project in Germany for which it offered to pay six billion euros in a 2023 state auction, arguing that slow grid connections and a deteriorating economic environment have triggered the decision, public broadcaster NDR and newspaper Süddeutsche Zeitung (SZ) reported after a joint investigation. According to the reports, the French energy company recently offered unsuccessful competitors the opportunity to buy TotalEnergies' rights to build wind turbines with a total capacity of 7.5 gigawatts (GW). Germany aims to build 30 GW of offshore wind energy capacity by 2030, up from just under 10 GW at the end of 2025. NDR and the Süddeutsche Zeitung cite an internal document in which TotalEnergies said several projects from auction rounds between 2023 and 2025 “probably cannot be implemented.” The company told the outlets that it still aims to develop the areas but is also exploring options for dealing with project delays. The mood in Germany’s offshore wind industry and elsewhere in Europe has shifted markedly in recent years. While bidders in offshore auctions in 2023 were ready to pay billions of euros for the right to implement new projects, a subsequent auction round in 2025 failed to attract a single bid. According to offshore wind industry association BWO, the meagre expansion of less than 1 GW annually since 2020 was mainly triggered by a spike in investment and capital costs. TotalEnergies surprised observers with its sizeable bid in 2023, which would have made the fossil fuel heavyweight a major player in Germany’s renewable energy sector. So far, the company has paid 800 million euros of its total commitment and lodged a security deposit of 750 million euros, reported NDR and SZ. It now hopes to recover this deposit along with a discount from its successor for surveying the auctioned areas, the reports said. Grid operator Tennet said it is alarmed by a possible withdrawal. The German economy ministry told the outlets that bidders have no legal right to withdraw from an auctioned project, adding that it expects the plans to go ahead. However, the final investment decision is only required once an official grid connection date has been announced, which has not yet occurred, the reports said. The auction proceeds have already been earmarked for financing grid fee reductions to cap electricity prices and fund grid expansion. If no payments are made, this could cause further delays in Germany's grid development, wrote NDR and SZ. According to the reports, energy company BP, which also won a successful multi-billion euro bid in 2023, could seek a similar opt-out. After transferring its offshore wind activities into a subsidiary in 2025, the new company is said to be scaling back and ultimately planning to shut down its offices in Berlin and Hamburg, NDR and Süddeutsche Zeitung reported. The outlets said that offshore wind power industry association BWO is working on a compromise proposal that would allow successful bidders to withdraw from a project but bar them from re-bidding for the same areas – and require companies to pass on their surveying data to the Federal Network Agency (BNetzA). BWO member companies fear that a protracted legal battle over the projects could disrupt demand and undermine “industrial continuity” and “credibility” for Germany’s offshore wind industry.
