Germany’s offshore wind expansion plans are under pressure after reports revealed major developers are evaluating exits from multi-billion-euro projects due to delayed grid connections and rising investment costs. The situation has raised concerns over investor confidence and the country’s long-term offshore wind targets.
Germany’s offshore wind sector is facing growing pressure after reports emerged that TotalEnergies is seeking to exit major offshore wind projects secured during the country’s 2023 auction round.
According to investigations by NDR and Süddeutsche Zeitung, the company has explored selling rights to develop offshore wind projects with a combined capacity of 7.5 GW, citing delayed grid connections and worsening economic conditions.
Germany aims to expand offshore wind capacity to 30 GW by 2030, up from just under 10 GW at the end of 2025. However, the industry’s outlook has weakened significantly since the record-breaking 2023 auction, where developers paid billions for project rights. In contrast, Germany’s 2025 offshore wind auction reportedly attracted no bids.
The reports cited internal TotalEnergies documents suggesting several projects awarded between 2023 and 2025 may not be financially viable. Although the company said it still intends to develop the sites, it is also evaluating options to manage project delays.
Industry association Bundesverband Windenergie Offshore (BWO) attributed the slowdown to rising investment and capital costs, which have constrained annual offshore wind expansion to below 1 GW since 2020.
TotalEnergies had committed around six billion euros during the 2023 auction and has reportedly already paid 800 million euros, alongside a 750 million euro security deposit. The company is now said to be seeking recovery of these costs through a potential transfer of project rights.
Germany’s economy ministry reportedly stated that developers have no legal right to withdraw from awarded projects and expects developments to proceed. However, final investment decisions are only required once official grid connection dates are confirmed.
Grid operator TenneT warned that any withdrawal could impact planned grid fee reductions and delay network expansion projects, as auction proceeds had already been allocated for those purposes.
The reports also suggested BP may consider a similar move after restructuring its offshore wind business in 2025 and reportedly scaling back operations in Germany.
BWO is now reportedly working on a compromise proposal that would allow developers to withdraw under certain conditions while preventing them from re-bidding for the same project areas and requiring them to transfer survey data to Germany’s Federal Network Agency.
Industry groups fear prolonged legal disputes could undermine investor confidence, disrupt supply chains, and weaken the long-term credibility of Germany’s offshore wind market.