Orsted has welcomed the direction of Germany’s planned 2.5GW North Sea offshore wind auction after reviewing the latest draft terms and conditions.

Chief executive Rasmus Errboe told analysts during a quarterly earnings call that the draft contained several positive elements. He highlighted Germany’s renewable generation targets of 30GW by 2030 and 70GW by 2045, as well as the return of two-sided contracts for difference.

The proposed framework would use CfDs as a support mechanism for offshore wind projects only if no company is prepared to develop a project without support.

Errboe said the introduction of CfDs in Germany was overdue and described the market as particularly attractive.

He also said there were elements of the framework that Orsted would have structured differently. The company plans to address those points as part of the market hearing.

Errboe declined to comment on the €94/MWh price caps set for the upcoming auction. He said Orsted remained pleased with the direction being taken in Germany.