Germany’s Onshore Wind Auctions: Record Bids and Plummeting Prices

Germany is accelerating its transition to renewable energy, but the surge in capacity is coming with a significant price drop. Recent onshore wind auctions managed by the Federal Network Agency (Bundesnetzagentur or BNetzA) reveal a market characterized by massive oversubscription and bid prices hitting seven-year lows, creating a complex environment for developers and manufacturers.

2026 Auction Results: A Seven-Year Low

The first onshore wind power tender of 2026 highlighted a dramatic shift in pricing. According to the Federal Network Agency (BNetzA), the regulator awarded 3.4 gigawatts (GW) of capacity to 439 winning bids. The competition was fierce, with 924 total bids representing more than 7.8 GW of potential capacity.

The most striking detail is the price collapse. The average winning bid dropped from 6.06 cents to 5.54 cents per kilowatt-hour (kWh). Winning bids ranged from a minimum of 5.19 cents to a maximum of 5.64 cents per kWh. While this is a win for consumers and the state, it has raised alarms within the industry.

The 2025 Momentum: Record-Breaking Volume

The downward price trend followed a period of unprecedented interest in late 2025. The onshore wind auction that closed on November 1, 2025, saw the highest volume of bids ever reached in a single bidding round. A total of 905 bids, totaling 8,155 MW, were submitted for a volume of 3,450 MW.

Of these, 415 bids totaling 3,456 MW were awarded. The average volume-weighted award price for that round was 6.06 ct/kWh, which was already well below the price ceiling of 7.35 ct/kWh. This pattern of oversubscription across every round in 2025 underscores the strong appetite for wind development in Germany.

Regional Disparities in Wind Deployment

Despite the national success in tendering, the geographical distribution of wind farms remains heavily skewed toward the north. The states of Lower Saxony and North Rhine-Westphalia consistently secure the largest volumes of successful bids. In the November 2025 auction, North Rhine-Westphalia led with 1,093 MW (148 awards), followed closely by Lower Saxony with 1,091 MW (133 awards).

In contrast, the southern states of Bavaria and Baden-Württemberg continue to lag. In the early 2026 auction, these states accounted for only 2% of the total winning bid volume. This disparity remains a critical challenge for the government, which seeks to balance the energy grid by increasing installed capacity in the south.

Economic Pressures and Future Outlook

The plummeting price of wind energy is a double-edged sword. While it accelerates the move toward cheaper green energy, it puts immense pressure on the supply chain. Analysts suggest that the current slump in tender prices threatens developer profits and could trigger a price war among wind turbine manufacturers.

Despite these economic tensions, Germany is doubling down on its wind strategy. The country approved a record 20.8 GW of onshore wind permissions in 2025, and installed capacity rose by 5.2 GW during that year. Looking ahead, the government’s 2026 Climate Action Programme proposes tendering an additional 12 GW of onshore wind capacity by 2030, a move described by Environment Minister Carsten Schneider as a vital step toward meeting national emissions reduction targets.