Auctioned offshore zones fetched three billion euros in funds raised
In the chilly North Sea off Germany, two fresh wind farms are slated to arise and power up by 2031. The sale of the zones earns a whopping billion-euro sum. The intention is to lower electric rates with the funds.
The Federal Network Agency has sold the construction rights for two wind farms in the North Sea for around three billion Euros. These licenses cover two areas located about 120 kilometers northwest of Helgoland, one with a power capacity of 1500 Megawatts and the other 1000 Megawatts, as the agency in Bonn stated. At the former, Offshore Wind One GmbH secured the bid for nearly two billion Euros, while at the latter, a project company of energy conglomerate EnBW for about 1.1 billion Euros. With the green light in hand, these companies can kickstart a planning approval process to build and manage wind turbines, feeding power into Germany's grid. The wind farms are slated to be operational in 2031.
Offshore Wind One GmbH's bidding team once included energy firm RWE, but the partnership reportedly dissolved abruptly. "TotalEnergies will be in charge of the project," said an RWE spokeswoman. TotalEnergies, a French corporation known for selling petroleum, natural gas, and other energy goods, as well as electric vehicle charging stations, will proceed alone with the project.
This is the second time companies in Germany have paid for offshore wind rights - previously, the state financed them, meaning they received the money instead. Later, companies relinquished this funding, yet didn't pay it back. The demand has surged. Last year, the Network Agency held the first auction, which fetched 12.6 billion Euros.
The funds from offshore auctions are primarily geared towards reducing electricity costs and, to a slight degree, marine wildlife protection and sustainable fishing promotion. The funds earmarked for marine conservation must be transferred to the federal budget within a year. The cost reduction component will be paid to transmission network operators tied to the grid connection in equal annual installments, beginning from the commissioning date of the wind farm in 2031, says the agency.
At the year's end, according to energy company EnBW, wind turbines with a combined capacity of nearly 8500 Megawatts had been installed in the North and Baltic Seas. The Federal Government aims to reach 30,000 Megawatts by 2030.
