Solar Fares Better Than Wind In German Auctions

Solar Oversubscribed, Onshore Wind Under Subscribed In First German Tenders In 2019; Bundesnetzagentur Awarded 178 MW Solar With €0.0480/kWh Average Winning Bids; Higher Than Last Tender
12:55 PM (Beijing Time) - 20. February 2019
german solar wind auctions 2019-2

The bids for Germany's latest solar power tender were capped at €0.0891 ($0.10) per kWh, and finally it received average winning bid of €0.0480 ($0.054) per kWh, higher than the previous average reached in October 2018. Compared to solar, the onshore wind power tender was not only undersubscribed, but bids were much higher.

Key Takeaways

  • Bundesnetzagentur of Germany has awarded 178 MW of solar power capacity in the first auction of 2019, an increase from the originally tendered 175 MW
  • Average winning bid for solar power was €0.0480 ($0.054) per kWh, and the winning bids ranged between €0.0411 and €0.0518 ($0.047 to $0.059) per kWh
  • Out of 80 bids received for 465 MW capacity, the agency selected 24 bids with 178 MW in total
  • Onshore wind was undersubscribed and also received higher bids compared to solar, with winning bids ranging between €0.0524 to €0.0620 ($0.059 to $0.070) per kWh

In the first separate solar and wind power tenders of 2019 in Germany, solar has beaten wind power once again in terms of interest shown by developers. The Federal Network Agency or Bundesnetzagentur had launched the tender in December 2018 offering 175 MW to solar and 700 MW to wind power (see Germany Launches Separate Wind & Solar Tenders).

The results show an oversubscribed solar power tender that received 80 bids representing a total of 465 MW, as against the 175 MW originally tendered. Finally, the agency awarded 24 bids with 178 MW cumulative capacity, of which 22 projects are in southern German state Bavaria alone.

Bids for solar capacity were capped at €0.0891 ($0.10) per kWh. According to the agency, winning bids ranged between €0.0411 and €0.0518 ($0.047 to $0.059) per kWh. The average awarded bid level was €0.0480 ($0.054) per kWh which means, solar tariffs went up from the last auction in October 2018 when the average winning bid was €0.0469 ($0.054) per kWh (see Germany Awards 192 MW With L1 Bid Of €0.0386/kWh).

E.On, Energiekontor Solar, Enerparc are some of the winners in the tender. Complete list of the winners is available on the agency’s website.

Compared to solar, onshore wind didn’t do as well as it received only 72 bids for 499 MW capacity even though 700 MW was on offer. Finally, 67 bids totalling 476 MW were selected. Winning tariffs too ranged higher than solar ranging between €0.0524 to €0.0620 ($0.059 to $0.070) per kWh.

The next tender date for solar projects is on March 1, 2019.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani