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Market Trends

Record Permits Fuel Growing Competition and Lead to Lower Price Levels in Germany’s Onshore Wind Auction

Germany’s latest onshore wind EEG auction confirms strong oversubscription and continued downward pressure on awarded prices.

The auction attracted the second largest volume ever submitted at 5.74 GW, of which only 3.44 GW secured an EEG subsidy. By comparison, around 5 GW were submitted in the previous round in May. This marks the fifth consecutive oversubscribed auction, reflecting a highly positive trend driven by the surge in awarded onshore wind permits since 2023, due to improvements in the permitting process. In 2024, 14 GW of wind projects received permits, and momentum has further accelerated in 2025, with 10 GW already permitted by the end of August. Awarded volumes this year now total 11 GW, equalling last year’s figure with one more auction still to come in November. In comparison, Germany currently has 66.3 GW of onshore wind capacity installed.

The strong participation also influenced price outcomes. The volume-weighted average fell to 65.7 EUR/MWh, down from 68.3 EUR/MWh in the May auction. Awarded prices ranged between 63.9 and 66.4 EUR/MWh, well below the ceiling of 73.5 EUR/MWh. This is the fourth consecutive auction with declining price levels.

When benchmarked against short-term PPA prices, a temporary subsidy opt-out could offer an attractive upside for many projects. Relative to the awarded average, a 1-year pay-as-produced PPA would have delivered an additional 3 EUR/MWh in fixed revenues.

 

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