Germany’s 604 MW Wind and 202 MW Solar Tenders Undersubscribed

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Germany’s recent offshore wind energy auction for 604 MW has received interest for only a third (203 MW) of the capacity on offer, amounting to 16 bids in total, according to the Federal Network Agency (Bundesnetzagentur).

The Federal Network Agency had reduced the initial tender volume from 1,190 MW due to the expected number of eligible approvals reported in the market master data register.

Out of the 16 bids submitted, 14 bids for a total capacity of 203 MW were accepted in the auction.

The tariffs ​​determined in the bids range between €0.0586 (~$0.062)/kWh and €0.0588 (~$0.063)/kWh. At €0.587 (~$0.062)/kWh, the average volume-weighted bid value is slightly below the maximum value and, in contrast to the previous round, has risen from €0.0584 (~$0.061)/kWh.

Similar to the previous tenders, bids for locations in Lower Saxony (72 MW) and North Rhine-Westphalia (30 MW) were awarded the largest capacities.

Solar tender

The tender round for solar systems on buildings and noise protection walls was also undersubscribed. The tender volume in this round was 202 MW.

It corresponded to the average of the bid volume of the accepted bids from the bidding rounds on April 1, 2022, and August 1, 2022, and was thus significantly below that of the previous round.

The agency received 67 bids for 128 MW capacity. Fifty-six bids with a volume of 105 MW were accepted.

The surcharge values determined in the bids ranged between €0.0809 (~$0.086)/kWh and €0.891 (*~$0.95)/kWh. The average volume-weighted bid value was €0.0874 (~$0.093)/kWh, less than €0.0884 (~$0.094)/kWh in the previous round despite the significant undersubscription.

Projects in 14 federal states were awarded contracts. Most of the bids went to projects in North Rhine-Westphalia (28 MW), followed by Baden-Württemberg (6 MW), Berlin (7 MW), and Lower Saxony (12 MW).

The tender in June for 1.126 GW of solar projects was undersubscribed by 412 MW, which means a whopping 37% of the tendered capacity did not find any takers.

Germany recently approved a  law to ensure renewables must be at least 80% of the country’s power capacity mix by 2030.