Europe is accelerating its transition towards a net-zero economy, with strategic renewable energy auctions set to define the second half of 2025. Governments across the continent are not only pushing for ambitious capacity additions but also implementing supportive regulatory frameworks to attract international investors. In total, more than 25 billion euros in potential investments are expected to be mobilised through these auctions, positioning the region at the forefront of the global clean energy race.
Over 21 GW of renewable capacity will be auctioned across Europe in what remains of 2025, covering offshore wind, onshore wind, solar PV, agrivoltaics, and energy storage solutions. France and Germany lead the charge with large-scale offshore and solar tenders, while Portugal focuses on its first major floating wind auction. The United Kingdom is set to expand its offshore wind and green hydrogen initiatives, and Eastern European countries like Romania and Poland are opening new opportunities in wind and solar markets.
Portugal
Portugal is positioning itself as a key offshore wind player in Europe, building on its competitive advantage of a vast Atlantic coastline and strong wind resources. The government plans to auction between 6 and 10 GW of offshore wind capacity through its Norte Offshore Wind Plan, supporting its target of 80% renewable electricity generation by 2030.
In the short term, attention is focused on the upcoming floating offshore wind auction, planned for the Viana do Castelo zone, with a target capacity of 1,500 MW. This will be Portugal’s first formal offshore wind tender.
Final project allocations are expected to prioritise zones like Viana do Castelo and Leixões, with deep-water conditions suitable for both fixed-bottom and floating wind technologies. Industry leaders such as Iberdrola, Ocean Winds, and RWE have already expressed interest in participating, driven by Portugal’s favourable permitting reforms and the introduction of power purchase agreements (PPAs) tailored for offshore projects.
Italy
Italy’s commitment to diversifying its energy portfolio is reflected in the significant focus on agrivoltaics, a solution that aligns renewable energy development with agricultural sustainability. With a dedicated fund of 1.1 billion euros, the government aims to support 1.04 GW of agrivoltaic capacity through the FER2 incentive scheme, promoting dual land use and reducing land-use conflicts.
In parallel, the MACSE programme targets the award of 1 GW of grid-scale energy storage. Italy’s grid operator, Terna, has highlighted the urgent need for at least 9 GW of new storage capacity by 2030 to manage the volatility of intermittent renewables. Battery energy storage systems (BESS) and innovative solutions such as green hydrogen are expected to play a pivotal role in these auctions.
Initially expected before summer, this auction aims to allocate 10 GWh of new storage capacity, with plans for progressive increases in subsequent years, reaching 50 GWh by 2030.
France
France continues to lead the charge in offshore wind innovation with its AO9 auction round, which will allocate 1.5 GW of floating wind capacity—one of the largest commitments globally to this emerging technology. An additional 1 GW of fixed-bottom offshore wind will also be auctioned, reinforcing France’s ambition to deploy 40 GW of offshore wind by 2050.
The French government is offering extended project development support, including priority grid access and accelerated permitting processes under the Multiannual Energy Programme (PPE). Key tender areas include the Brittany and Mediterranean coasts, regions known for their high wind yield and strategic proximity to industrial hubs.
Romania
Romania is leveraging its Contracts for Difference (CfD) mechanism to provide long-term financial certainty for renewable energy projects. The upcoming auction round, expected in Q3 2025, will allocate 2,000 MW for onshore wind energy and 1,472 MW for solar photovoltaic,
The CfD scheme guarantees a fixed revenue for project developers, reducing exposure to volatile energy markets and foreign exchange risks. With the European Bank for Reconstruction and Development (EBRD) actively supporting project financing, Romania is emerging as a promising destination for energy investors seeking high-growth, low-competition markets.
Germany
Germany remains Europe’s largest onshore wind market, with an ambitious plan to auction 3.4 GW of new capacity in 2025 through its Bundesnetzagentur. This is part of the country’s long-term vision to meet 80% of its electricity demand with renewables by 2030, requiring an installed wind capacity of at least 115 GW.
Recent legislative reforms, including the Onshore Wind Acceleration Act, aim to cut red tape and streamline the environmental permitting process. The government has also designated priority areas for wind development, targeting underutilised federal lands and former military sites. Leading developers such as Enercon, Nordex, and Vestas are expected to dominate the auctions.
It’s worth remembering that the Federal Network Agency (Bundesnetzagentur) planned to auction off solar projects totaling 9,900 MW over three bidding rounds. At the end of April, it awarded 2.64 GW in solar tenders amid record overdemand.
The next tender for first-segment solar plants is scheduled for 1 July 2025. The sector anticipates that, should the “Solar Package I” gain approval by then, regulatory changes will enable larger-scale developments, particularly in agricultural and specialised areas.
United Kingdom
The UK remains a critical player in Europe’s clean energy landscape, with the upcoming CfD Allocation Round 7 (AR7) poised to unlock significant investments in offshore wind and emerging technologies like green hydrogen. However, the country faces challenges in meeting its 1 GW hydrogen production target for 2025, as the latest subsidy round only shortlisted 875 MW of capacity.
Despite this, the UK government is committed to enhancing its hydrogen strategy under the British Energy Security Strategy, which includes financial incentives for electrolyser deployment and the development of a dedicated hydrogen transmission network. On the renewables front, AR7 will feature a larger budget and relaxed price caps to improve investor confidence after the under-subscribed AR6 round in 2024.
Estonia
Estonia is rapidly advancing its plans to become a major offshore wind hub in the Baltic region. The government’s Maritime Spatial Plan outlines over 7 GW of potential offshore capacity, with the first auctions scheduled before the end of this year. Key development zones include the Gulf of Riga and the Saaremaa Island waters, strategically located to export power to Finland and Sweden.
The auction for the Saare 7 site is expected to take place in June of this year for a 552 MW offshore wind farm.
The upcoming auctions will benefit from the EU’s Recovery and Resilience Facility, providing co-financing for grid connection infrastructure and feasibility studies. International developers are closely monitoring the Estonian market, attracted by its untapped potential and proximity to high-demand Nordic markets.
Lithuania
The 700 MW offshore wind tender in the Baltic Sea, temporarily suspended earlier this year by the Lithuanian government due to cost concerns, will be re-launched in June. Lithuania’s Minister of Energy, Zygimantas Vaičiūnas, confirmed the details of the two-sided CfD.
Also, the country is launching an 800 MWh energy storage tender. Applications will be open until June 17, 2025.
Poland
Poland plans to auction up to 1 GW of renewable capacity in 2025, focusing on both large-scale solar PV and wind energy. This initiative supports the government’s target of achieving 50% renewable electricity generation by 2040, a significant leap for a country historically reliant on coal.
Additionally, Poland is investing heavily in energy storage through subsidies for 65 projects, each with a capacity of 2 MW, primarily targeting grid balancing and frequency regulation. The Polish Energy Regulatory Office is also developing guidelines to streamline project approvals, a critical move to unlock delayed renewable projects.
Croatia
Croatia is preparing to launch solar PV tenders worth 1 billion euros, funded through its National Recovery and Resilience Plan (NRRP). These auctions will prioritise self-consumption and large-scale projects capable of supporting grid decarbonisation.
The Croatian government is also revising its energy law to simplify permitting procedures and align with EU directives on renewable energy acceleration. Solar developers are particularly interested in projects located along the Dalmatian coast, where high solar irradiation levels promise strong returns on investment.
Denmark
In a surprising move, Denmark cancelled its 3 GW offshore wind auction earlier this year, citing the need to redesign the scheme to ensure higher public revenue and better economic viability for projects. The decision comes amid increasing concerns over rising construction costs and grid bottlenecks affecting offshore wind developers.
Denmark is redirecting its focus toward becoming a global leader in green hydrogen exports, leveraging its surplus renewable generation capacity. Major initiatives under the Power-to-X strategy aim to produce up to 4 GW of hydrogen capacity by 2030, with significant export agreements under negotiation with Germany and the Netherlands.
Bulgaria
Bulgaria will support 82 standalone renewable energy storage projects through its EU-funded RESTORE programme, allocating over 1.15 billion levs ($675 million).
According to the Ministry of Energy, the selected projects will provide a total usable storage capacity of 9,712.89 MWh — more than triple the initial target of 3 GWh set by the tender.
Finland
The European Commission has awarded €52 million (US$59.1 million) to support nine renewable energy projects through its cross-border auction initiative.
The projects, which will add a combined 445.65 MW of capacity, are set to be developed in Finland and Estonia.
Most of the awarded capacity comes from solar PV installations in Finland, with seven projects selected under the Renewable Energy Financing Mechanism (RENEWFM). These range from 10 MWp to 80 MWp and include several sites planned on former gravel and peat extraction areas.
