Germany Bet on Wind and Lost
Germany’s latest offshore wind auction ended in failure: not a single bid. Despite the talk about offshore wind becoming a self-sustaining industry, investors made it clear: without significant subsidies, it’s simply not worth the risk.
Bloomberg News reports,
“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 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.”
It’s a stunning reversal from just two years ago, when BP and TotalEnergies were paying billions to secure offshore projects. Now BP is pulling back from renewables and doubling down on fossil fuels, while Total is rethinking its German wind plans. Rising construction costs, supply chain issues, and declining power prices have affected the industry.
Germany’s troubles aren’t unique. India recently canceled two major offshore wind tenders totaling 4.5 gigawatts after investors withdrew their bids. Even solar energy is struggling to operate without subsidies. The message is clear: these projects are not market-ready.
America should pay attention. If we follow Germany’s and the eco-left’s approach of phasing out dependable baseload energy in favor of heavily subsidized, weather-dependent power, we risk facing the same results: higher prices, weaker grids, and energy shortages when we can least afford them.
The lesson is clear: keep the lights on with dependable energy we can rely on, not with wishful thinking. Reliable energy from natural gas, fossil fuels, nuclear, and other proven sources must remain the foundation of our power system.
August 13, 2025