POWER
Germany is expected to surpass its previous record by installing 5.8GW of onshore wind capacity in 2025, with the EU set to award 20.9GW of onshore wind revenue support contracts, data from BNEF show.
- The strong additions in German onshore wind is driven by reforms in permitting processes and strong demand for renewables.
- Additionally, the commissioning of Orsted and Glennmont Partner’s 913MW Borkum Riffgrund III offshore wind farm this year will elevate Germany to the position of the world’s third-largest wind market in 2025.
- Separately, European governments are expected to award 20.9GW of onshore wind revenue support contracts through auctions in 2025, compared to 11.7GW for offshore wind.
- Germany will support approximately half of Europe’s onshore wind contracts in 2025.
- The country originally planned to auction 10GW of onshore wind capacity but may increase support to 14GW due to unallocated capacity from 2024.
- Romania awarded 1.1GW of onshore wind in its first auction and plans a second round for 1.5GW in 2025.
- Estonia is aiming to procure 1.4GW of onshore wind generation, while Spain could increase its contribution if auction caps are revised, following a low turnout in 2022.
- However, the lack of robust government support for offshore projects has dampened auction interest, potentially slowing growth in this segment despite Europe's ambitious energy transition goals, BNEF added.
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