Germany’s federal cabinet has approved an amendment to the Offshore Wind Energy Act designed to reduce investment risks and improve the chances that projects awarded in government tenders are ultimately built.
The draft legislation was approved on 2 September and will now proceed to the Bundestag. The government expects the revised framework to take effect from 1 January 2027.
The reform follows concerns over Germany’s previous auction model, under which developers could submit very high bids for offshore wind sites without sufficient certainty that projects would reach construction. The government says the new rules are intended to improve cost efficiency, investment security and industrial resilience.
Federal Minister for Economic Affairs and Energy Katherina Reiche said the existing system had produced “risk-laden bids” without adequately ensuring that awarded projects would be built.
Under the proposed changes, offshore wind tenders will continue to use a dynamic bidding process, but the framework is being adjusted to place greater emphasis on project deliverability and financing. Industry groups have also been pushing for changes to the auction system, including greater use of contracts for difference to provide revenue certainty.
The legislation comes as Germany continues to expand offshore generation as part of its wider energy transition. Offshore wind supplied 5.7% of Germany’s electricity generation in the first half of 2026, while offshore installations reached 0.9 GW during the period, up from 0.5 GW in the first half of 2025.
The government says the amendment should help make future offshore wind investment more predictable while ensuring that auctioned capacity contributes to Germany’s power supply rather than remaining tied up in projects that fail to progress.
The draft now faces parliamentary scrutiny before becoming law.
