WindSeeG Amendment Adopted by Cabinet: Foundation Welcomes Review of Indexation Mechanism but Sees Further Need for Action
Berlin, 02 September 2026
Today, the Federal Cabinet adopted the draft amendment to the Offshore Wind Energy Act (WindSeeG), thereby paving the way for parliamentary deliberations.
“We expressly welcome the fact that the Federal Government has taken up the concerns raised by the industry and will now examine the introduction of an indexation mechanism for the planning and construction phase. This review must result in a robust regulatory provision during the parliamentary process. An appropriate indexation mechanism is an important component of an auction framework that is capable of supporting investment.
The need for such a mechanism is also evident from the projects awarded contracts in recent years. Their economic viability is now under considerable pressure due to the combined effects of significantly increased costs, changing financing and market conditions, and, in some cases, highly ambitious bid and project calculations. Future tenders therefore require a framework that enables robust investment decisions and reduces the risk of projects ultimately not being realised.
However, the draft still does not address all structural weaknesses of the future auction design. The proposed two-stage model initially provides for an uncapped dynamic bidding procedure. A Contract for Difference (CfD) auction would only be considered as a subsequent option. This means that the risk remains that particularly attractive sites could be subject to very high payment obligations and that bids could emerge whose economic viability is not sufficiently robust over the long implementation periods. Improvements are therefore still needed during the parliamentary process.
The draft also fails to resolve the most pressing current problem facing Germany’s offshore wind expansion: final investment decisions for around 16 gigawatts of projects that have already been awarded contracts are still pending. Further delays could result in a significant gap in expansion, push the supply chain to its limits and jeopardise the achievement of the statutory expansion targets.
For this reason, the amendment must include a one-time, clearly time-limited option to return sites, combined with appropriate economic consequences. It must not create a risk-free exit option for project developers. The aim is not to subsequently relieve companies of the consequences of their economic decisions, but rather to release at-risk sites at an early stage and rapidly re-tender them under viable conditions. In particular, anyone returning a site should therefore be excluded from submitting a new bid for the same site,” says Andreas Mummert, Head of Policy at the OFFSHORE WINDENERGY Foundation.
“It is now in the hands of the German Bundestag to further develop the reform in such a way that it creates reliable investment conditions, secures the realisation of projects and prevents a prolonged gap in expansion with serious consequences for the supply chain,” Mummert continues.
The Foundation supports the objective of bringing the amendment into force on 1 January 2027. However, the necessary speed must not come at the expense of careful parliamentary deliberation. This process must be used to address the remaining weaknesses and place offshore wind expansion on a stable and investment-capable footing for the long term.
About the German Fundation Offshore Wind Energy
The German Offshore Wind Energy Foundation was created in 2005 to promote environmental and climate protection. The main objective is to promote the use of wind energy at sea, and to improve research. The Foundation has since established itself as a nonpartisan, multiregional, independent institution supporting offshore wind energy in Germany and Europe. It serves as a communication platform for political decision-makers, for business, and for research. The Foundation serves as a platform to share expertise and as an initiator of new ideas. At the same time, it also represents and bundles the various stakeholders' interests, representing them towards politics, economy, and science, as well as to the general public.
