TotalEnergies secures two marine concessions for wind energy in Germany
TotalEnergies has secured two marine concessions, N-12.1 and O-2.2, for wind energy following a successful auction held by the Bundesnetzagentur (German Federal Network Agency).
Concession N-12.1 is located 170 kilometers off the coast, in the North Sea, and spans approximately 200 square kilometers, while concession O-2.2, spanning around 100 square kilometers, is situated 40 kilometers from the coast, in the Baltic Sea.
The concessions are valid for a term of 25 years, extendable up to 35 years. The two wind farms, having capacities of 2 GW and 1 GW respectively, are expected to generate electricity enough for over 3 million homes. As part of the agreement, TotalEnergies will pay the German Federal government €582 million, which will be used for marine environment conservation and promoting environmentally friendly fishing. Furthermore, an annual fee will be paid to the electricity transmission system operators responsible for connecting the projects, for 20 years from the commissioning of the sites.
The electricity produced from these sites will be marketed by TotalEnergies, either via direct sale on the electricity market or through Power Purchase Agreements (PPAs) with end-buyers, allowing them to reduce their carbon footprint. These cost-competitive projects align with TotalEnergies’ strategy of becoming an integrated player in the electricity markets and are expected to contribute to the Integrated Power Business Unit’s goal of reaching a two-digit profitability.
These projects align with the German government’s objective of deploying 30 GW of offshore wind power in Germany by 2030. TotalEnergies’ next steps involve conducting studies to obtain environmental permits, as well as technical analyses on these sites, with investment decisions expected by 2027 and commissioning targeted for 2030.
Patrick Pouyanné, chairman and CEO of TotalEnergies, stated, “TotalEnergies is proud to leverage its expertise in offshore and large-scale projects to build these giant wind farms, which will make a significant contribution to the development of renewable electricity in Europe by 2030. Our entry into offshore wind power in Germany, Europe’s largest electricity market, is a key step in the implementation of our strategy to become an integrated profitable player in the electricity markets.”