Germany rejects TotalEnergies' request for better terms on offshore wind projects

[offshore windmill park with clouds and a blue sky]
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Germany's government has rejected [https://www.bloomberg.com/news/articles/2025-10-22/germany-rejects-totalenergies-call-for-better-wind-farm-terms] TotalEnergies' (NYSE:TTE [https://seekingalpha.com/symbol/TTE]) request to improve the financial terms on its costly offshore wind projects, in a decision that could hurt the company's profits, Bloomberg reported Wednesday.

TotalEnergies (NYSE:TTE [https://seekingalpha.com/symbol/TTE]) agreed in 2023 to pay €5.8 billion (~$6.7 billion) for the right to build wind farms in the North Sea and Baltic Sea producing 3 GW of power, prices it now says were inflated at the market’s peak, and the company has since secured cheaper leases and warned of losses tied to grid delays and lower than expected wind output, according to the report.

CEO Patrick Pouyanne reportedly wrote to Katherina Reiche, Germany's economy minister, to ask for financial relief, but the government refused, saying it did not want to make an exception that could lead to other developers such as BP (BP [https://seekingalpha.com/symbol/BP]) to demand the same.

Germany, like many European countries, wants to expand offshore wind to cut pollution and reduce reliance on fossil fuels, but rising costs and inflation have made projects that already require billions of euros to build harder to deliver.

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