TotalEnergies, EnBW Secure 2.5 GW German Offshore Wind Site Auction

(RTTNews) - French energy major TotalEnergies SE (TTE) as well as German energy supply company EnBW have won a 2.5 gigawatt or GW offshore wind site auction in Germany by the country's Federal Network Agency.

Meanwhile, Germany utility RWE, which had initially partnered with TotalEnergies in the auction, reportedly exited the consortium.

In a statement, TotalEnergies announced that it has been awarded, as shareholder of Offshore Wind One GmbH, the maritime concession N-11.2 in the North Sea to develop 1.5 GW of offshore wind. The concession will run for a term of 25 years, extendable to 35 years.

TotalEnergies said it will build a 3.5 GW offshore wind hub in German North Sea, taking benefit of the synergies between this new lease and the 2 GW concession N-12.1 won last year.

The concession N-11.2 (1.5 GW), located around 120 kilometers north-west of the German island of Heligoland, covers an area of around 156 square kilometers.

Under the deal terms, Offshore Wind One will pay, at the latest in June 2025, the German Federal government 196 million euros, which will be allocated to marine conservation and the promotion of environmentally friendly fishing.

Further, an annual contribution of 88 million euros will be paid to the electricity transmission system operator in charge of connecting the project, for a term of twenty years starting from the commissioning of the site.

Separately, EnBW announced that it has been awarded a contract by the Federal Network Agency at an auction to develop a one GW offshore wind farm in the North Sea. The wind farm is set to enter operation in 2031.

EnBW CEO Georg Stamatelopoulos said, "We want to expand renewable energy capacity to between 10 and 11.5 GW by 2030 and be a climate-neutral company by 2035. To this end, we are investing a total of 40 billion euros in the energy transition by 2030, around a third of our total investment alone in the construction of wind farms and solar parks as well as flexibly controllable and hydrogen-ready gas power plants."

EnBW plans to sell much of the electricity produced by the offshore wind farm to industrial customers in the future through power purchase agreements.