German Offshore Wind in Doubt as TotalEnergies Seeks Exit

French energy major TotalEnergies is seeking to exit multiple offshore wind contracts in Germany. The move places construction timelines for several North and Baltic Sea wind farm projects at significant risk.

German newspaper SZ reported on 19 May that TotalEnergies is attempting to withdraw from offshore wind leases secured in a 2023 state auction. The company committed to paying €6.5bn (US$7bn) for the sites.

The withdrawal follows a similar exit in March when the Trump administration paid TotalEnergies US$1bn to abandon offshore wind projects off the US East Coast. Both decisions raise questions about the company's 2030 carbon reduction targets and 2050 net-zero goal.

TotalEnergies states it is "actively working on the realisation of our projects" but is seeking "practical solutions". The company has not specified what form these solutions could take.

Grid infrastructure at risk

European grid operator TenneT has warned that the potential withdrawal could delay already auctioned offshore wind farms by several years. The operator oversees power transmission infrastructure connecting offshore installations to mainland grids.

According to TenneT, more than 90% of the €13.5bn (US$14.6bn) raised in the 2023 auction was allocated to fund the expansion of offshore power lines and converter stations. These facilities connect wind farms in the North and Baltic Seas to the German grid.

"If this doesn't happen, we fear that while our grid connections will be built on time, offshore wind farms that have already been auctioned could be delayed by several years," TenneT warns. The statement indicates construction of transmission infrastructure could proceed without corresponding generation capacity.

Germany's economy ministry responded that under the current law, bidders have no legal right to withdraw. The ministry expects the projects to proceed as planned.

A legal grey area exists around the final investment decision, which is only triggered once an official grid connection date is set. No such date has been announced, which could allow for an extended delay.

US offshore construction cancelled

TotalEnergies relinquished two US offshore wind leases in March under an agreement with the Trump administration. The leases at Carolina Long Bay and in the New York Bight represented a combined planned capacity of 4GW.

Washington repaid US$1bn in lease fees from taxpayers' money. The funds were redirected to US gas and power infrastructure projects, including financing for the Rio Grande LNG plant in Texas.

Patrick Pouyanné, Chief Executive Officer at TotalEnergies, justifies the decision: "Considering that the development of offshore wind projects is not in the country's interest, we have decided to renounce offshore wind development in the United States, in exchange for the reimbursement of the lease fees."

Sam Salustro, Senior Vice President of Policy and Market Affairs at the Oceantic Network, criticises the arrangement: "Paying to remove affordable, homegrown energy out of the equation leaves American consumers struggling to pay their electricity bills."

Construction targets under pressure

Germany aims to reach 30GW of offshore wind capacity by 2030. Only 10GW had been installed by the end of 2025, according to industry data.

The four projects from the 2023 auction round account for 7GW of capacity. These projects are scheduled to come online between 2030 and 2032. If TotalEnergies exits its contracts, that figure will be significantly reduced.

A 2025 auction round in Germany failed to attract a single bid. The outcome reflects continued investor caution in offshore wind markets despite government capacity targets.

BWO, the offshore wind industry association, states this week that the situation touches on "central questions of industrial continuity, security of supply and the energy policy credibility of Germany as an offshore location". The association did not specify potential remedies.

TotalEnergies exported approximately 19 million tonnes of US LNG in 2025. The company's shift away from wind construction and towards gas represents a strategic change in capital allocation across its energy portfolio.