France and Germany boost onshore wind, but need clearer auction pipelines

⚡ AI Executive Summary

France and Germany recently conducted onshore wind auctions that awarded over 3 GW of combined capacity at competitive strike prices, reflecting strong developer interest and heavy oversubscription in both markets. France's 0.8 GW auction achieved an average price of €77/MWh, while Germany's 2.5 GW round reached €51/MWh, demonstrating the cost-competitiveness of onshore wind relative to fossil and nuclear alternatives. However, both auctions reveal structural market challenges: France's lack of visibility beyond 2026 is forcing developers to rush permits into limited bidding windows, while Germany's oversubscription, though beneficial for prices, may be creating unsustainably aggressive competition that could lead to bid defaults. For Europe to meet its electrification targets and reduce reliance on imported energy, policymakers must establish multi-year auction schedules with adequate volumes to balance competitive pricing against project viability and timely delivery.