Designing Non-Price Criteria for Offshore Wind Energy Tenders

European offshore wind energy tender regimes are currently under scrutiny following a series of underwhelming auction outcomes. At the same time, the European Commission’s Net-Zero Industry Act (NZIA) and European Wind Power Action Plan (WPAP) focus on the strengthening of European supply chains, calling for the use of well-designed non-price tender criteria and a stronger harmonisation of national auction regimes

The World Wildlife Fund (WWF) commissioned NERA to prepare a comprehensive study on effective non-price (qualitative) criteria for offshore wind tenders. The project team comprised Managing Director Dominik Hübler and Senior Consultant Leonie Janisch, with Senior Consultant Clemens König as peer reviewer.

NERA developed implementable criteria focused on climate and biodiversity protection, circularity, and supply-chain resilience. The study combined extensive analysis of existing non-price criteria with bilateral interviews of legal experts, sector specialists, and scientists, complemented by a stakeholder workshop with project developers. Furthermore, it examined how these criteria can be integrated into different auction designs, including potential contracts for difference (CfD) models.

When thoughtfully designed and implemented, non-price criteria can embed policy goals such as climate and nature protection early in project planning while also supporting further industrial policy goals. Key findings include:

• Five non-price prequalification and award criteria were identified to enhance environmental protection and sustainable project development across the project lifecycle in a way that can have significant industrial policy co-benefits.
• Auction design choices such as the weighting of price and non-price criteria, distribution, and combination with subsidy instruments like CfDs significantly influence the effectiveness of non-price criteria.
• A transparent, pre-defined evaluation approach (e.g., in the form of quantitative scoring) and effective incentives for the implementation of qualitative bid components during the project lifecycle are crucial for the effectiveness of non-price criteria beyond the tender award.
• An iterative approach to criteria development allows for continuous adaption based on auction experience, technological advances, and scientific insights and ensures criteria remain responsive, effective, and resilient across tenders.

NERA experts regularly advise investors, developers, regulators, and public stakeholders on offshore wind and renewable energy auctions. Their guidance covers tender design, regulatory advice, bid strategy support, and market analyses to support stakeholders across Europe.