Ørsted Backs Germany’s Return to Two-Sided CfDs for Offshore Wind

Ørsted’s chief executive has given a broadly positive assessment of Germany’s draft tender rules for an upcoming 2.5 GW offshore wind auction, calling the reintroduction of two-sided contracts for difference as a support mechanism a welcome and long-delayed development.

Speaking on the company’s quarterly earnings call, CEO Rasmus Errboe told analysts that Germany represents a highly attractive market. Under the draft conditions, two-sided CfDs would be activated only when no developer is prepared to proceed without state backing — positioning the instrument as a targeted safety net rather than a blanket subsidy.

“There are always mechanisms in regulatory frameworks that we would do differently, but we will discuss this within market consultations,” Errboe said, declining to specify particular objections ahead of the ongoing consultation process.

He also refrained from commenting on the €94-per-megawatt-hour price ceiling embedded in the forthcoming tender while terms remain under review. Errboe pointed to Germany’s renewable energy targets — 30 GW of capacity by 2030 and 70 GW by 2045 — as the broader context underpinning the company’s confidence in the market’s long-term direction.

Source: reNews