Germany Awards 505 Megawatts At €0.065/kWh In First Large-Scale Solar PV Tender
Germany’s Federal Network Agency finally announced the winners last week of its first special tender for large-scale solar PV that was held in early March, in which 121 contracts were awarded totaling 505 megawatts (MW) of capacity at an average price of €0.065 per kilowatt-hour (kWh).
The Federal Network Agency (Bundesnetzagentur) held its second solar tender of 2019, and the first special tender for large-scale solar PV projects (above 750 kW in size), on March 1, but took a month to advertise the results of the auction. A total of 121 bids were awarded contracts for a total of 505.2 MW, although there were 869 MW worth of bids submitted, a significant oversubscription even accounting for the 192 MW of bids which had to be rejected due to formal errors.
Successful bids were awarded at an average of €0.065/kWh with a low bid of €0.039/kW and a high of €0.084/kWh.
Jochen Homann, President of the Federal Network Agency, praised the outcome and concluded that there are now “sufficient solar projects in place to retrieve the additional tendering quantities introduced by the Energy Sources Act and to ensure a competitive process.”
“The solar industry has virtually adjusted to the larger volume of new construction and is ready to assume a much greater responsibility for the energy transition,” said Carsten Körnig, managing director of the German Solar Industry Association. “This testifies to the result of the first special tender from the Energy Collective Energy Act adopted at the turn of the year. Together with an invitation to tender issued in February, more than three times the capacity of the solar park was advertised in the first quarter of 2019 compared with the same period of the previous year.”
The German Solar Industry Association (Bundesverband Solarwirtschaft (BSW)) also believes that competition for future auction rounds will continue to increase.
Conversely, however, the Association also highlighted the “difficult and unnecessarily expensive” legal restrictions which have been imposed upon the country’s solar industry for potential solar project locations. “The current location restrictions are a corset and no longer up-to-date,” explained Körnig.
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