Analysis: Cross-border offshore wind farms reduce costs - Germany’s bold offshore wind expansion could slash costs by billions

A new study suggests Germany could save billions by expanding its offshore wind farms into Danish and Swedish waters. The move would also boost electricity production by up to 13 percent compared to relying only on German sites. Researchers argue this approach would make the country’s energy transition more affordable in the long run.

The Fraunhofer Institute for Wind Energy Systems (IWES) in Bremerhaven carried out the analysis for the German Offshore Wind Energy Foundation (BWO). Their findings show that building wind farms beyond Germany’s economic zone could cut costs despite higher construction and maintenance expenses.

The study tested two scenarios: one with 10 gigawatts of capacity in neighboring waters and another with 20 gigawatts. Denmark’s wind sites, in particular, offer stronger yields, which would improve overall productivity. More space also means turbines can be placed further apart, reducing interference and increasing efficiency. Germany currently has 9.2 gigawatts of offshore wind capacity but plans to reach 70 gigawatts by 2045. The BWO estimates that cross-border projects could deliver significant savings while supporting this ambitious target.

The research highlights a clear financial advantage to expanding into Danish and Swedish waters. With higher output and lower long-term costs, the strategy could play a key role in Germany’s renewable energy goals. The findings now provide policymakers with a data-backed case for cross-border collaboration.