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TotalEnergies and BP Signal Exit From Germany’s Auctioned Offshore Wind Sites

Their reassessments force ministers to weigh legal relief because rising costs and slow grid connections threaten to stall planned gigawatts of capacity.

Overview

  • Reports on Thursday, May 21 say TotalEnergies and BP are re-evaluating or seeking to withdraw from large North Sea and Baltic Sea areas they won in 2023–2024 auctions.
  • German law (WindSeeG) generally bars simple returns and holds winners to build obligations with penalties set at €100 per kilowatt, a theoretical 7.5 GW withdrawal would imply about €750 million in fines.
  • Companies point to delayed grid connections, higher interest and construction costs, US tariffs and Chinese export limits as the concrete reasons that projects have become uneconomic or uncertain.
  • The industry association BWO is urging a new voluntary-return rule and indexed 'difference' contracts to limit investor losses, while the economy ministry says it 'takes the situation seriously' and can use case-by-case legal options like shifting construction deadlines.
  • If developers abandon projects, the BWO and press estimates say up to around 16 GW of capacity could be blocked, putting roughly €50 billion of project and procurement value at stake and threatening about 49,000 German supply‑chain jobs.