German states demand revisions to offshore wind energy law

Eight German state premiers have issued a joint letter to Federal Economy Minister Katherina Reiche, warning that the proposed offshore wind energy law could trigger deindustrialization. The leaders, including Olaf Lies, Markus Söder, and Daniel Günther, expressed concern that incorrect regulatory and industrial policy decisions could disrupt the offshore wind supply chain.

A primary point of contention is the lack of a mechanism for companies to return auctioned areas that are no longer feasible to develop. The states argue that unviable projects currently block essential areas and grid capacities. They are calling for a clearly conditioned and legally secure option to return these concessions, followed by prompt re-tendering that allows previous preparatory work to remain usable.

The states also noted that the current draft does not establish Contracts for Difference (CfD) as a standard, which could impact investment security. They warned that a failure to address these issues could lead to a structural crisis in the offshore wind sector, posing a significant industrial policy risk to Germany.