FRANKFURT (Reuters) -TotalEnergies and EnBW secured a 2.5 GW German offshore wind site auction for $3.2 billion. The auction price represents a significant decrease compared to last year’s rates, as reported by the country’s energy regulator.
The auction of two plots in the North Sea, located around 120 kilometres (75 miles) northwest of Heligoland, underscores TotalEnergies’ continued interest in big offshore wind projects in Europe’s largest economy.
Last year, the French oil major and British peer BP emerged as winners in a similar auction. This highlighted their shift towards diversifying away from fossil fuels.
“The results show the attractiveness of investing in offshore wind energy in Germany,” Klaus Mueller, president of Germany’s Federal Network Agency, said. “They are another important step towards achieving offshore expansion targets.”
The auction consisted of two sites worth 1.5 and 1.0 gigawatt (GW) each. The planned offshore wind parks are expected to start operations in 2031, the regulator said.
TotalEnergies won the 1.5 GW site at a strike price of 1.96 billion euros ($2.1 billion) while EnBW won the 1.0 GW site at 1.07 billion, the regulator said.
Both companies must pay 10% to the German government within the next 12 months.
The result equates to an average strike price of around 1.2 million euros per MW, down a third from last year’s average, but still a price not all bidders found palatable.
Renewable energy investment continues to gain momentum as governments and industries worldwide prioritize environmental sustainability.
As TotalEnergies and EnBW forge ahead, their commitment to renewable energy investment promises to contribute significantly to global efforts in achieving carbon neutrality and fostering a cleaner, greener future.
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