Space is increasingly limited for wind farms in parts of the North Sea off Germany, the chief executive of Swedish energy giant Vattenfall told dpa in comments released on Wednesday.
Anna Borg explained that wind-farm turbines can interfere with each other, leading to reduced output for wind farms upwind in a phenomenon known as the wake effect
Germany has been seeking to expand its electricity generation through wind power, but concerns have risen as to whether wind farms in the country’s exclusive economic zone in the North Sea are secure enough to attract buyers.
In August 2025, the Federal Network Agency was unable to auction off two areas in the North Sea. In January, it became known that the German government intends to postpone a tender planned for this year.
Vattenfall examined the sites put out to tender last year, but ultimately decided against bidding for financial reasons, said Borg. She said the assessment could have been different if the government had committed to hedging price risks.
Vattenfall, which counts Germany among its core markets, plans to build the Nordlicht 1 and 2 wind farms at other locations in the North Sea.
Construction of Nordlicht 1 is scheduled to begin this year, with Nordlicht 2 expected to start in 2027. The projects are being built without government subsidies, said Borg.
The electricity generated by the farms is to be purchased directly by large industrial firms, Borg confirmed. German chemicals giant BASF, Dutch-US chemicals firm LyondellBasell and German steel producer Salzgitter are said to be among the customers.
An analysis by the Fraunhofer Institute for Wind Energy and Energy System Technology (IWES) has shown that the construction of offshore wind farms for the German market in areas off the coasts of neighbouring European countries could make the energy transition more affordable.
According to estimates by the German Offshore Wind Energy Association, billions in costs could be saved.
Borg said the proposal to build wind farms in Danish and Swedish waters for the German market should be examined. She underlined that Europe’s integrated energy system means electricity is transported between different countries.