Germany’s recent offshore wind energy auction for 3.21 GW has received interest for only less than half (1.5 GW) of the capacity on offer, according to the Federal Network Agency (Bundesnetzagentur).

The auction received only 126 bids, while Bundesnetzagentur excluded seven bids due to procedural errors.

The tariffs ​​quoted in the bids range between €0.0724 (~$0.077)/kWh and €0.0735 (~$0.078)/kWh. At €0.0743 (~$0.079)/kWh, the average quantity-weighted bid value is slightly below the newly defined maximum value.

Like the previous tenders, bids for locations in North Rhine-Westphalia (387 MW) and Lower Saxony (352 MW) were awarded the largest capacities.

The total auction volume for onshore wind turbines in 2023 will be 12,840 MW, more than twice as high as in 2022 with 5,332 MW. In 2023, the law provided for four tenders of 3,210 MW each. In 2022, there were four tenders of 1,333 MW each.

The Federal Network Agency had previously refrained from reducing the volume of tenders. Many registered developers did not participate in the tender last year due to supply chain-related delays in project implementation and the sharp increase in the levelized cost of electricity.

Solar tender

The tender round for solar systems on buildings and noise protection walls was also undersubscribed. The tender volume in this round was 217 MW.

In all, 94 bids with a volume of 213 MW were submitted. Of this, 87 bids with a volume of 195 MW were accepted.  Seven bids were excluded.

The surcharge values determined in the bids ranged between €0.09 (~$0.096)/kWh and €0.11 (~$0.12)/kWh. The average volume-weighted bid value was €0.10 (~$0.11)/kWh.

Most contracts went to projects in North Rhine-Westphalia (36 MW), followed by Brandenburg (20 MW), Baden-Württemberg (19 MW), Bavaria (19 MW), and Lower Saxony (15 MW).

The underwhelming response to solar and wind auctions in 2022 prompted the Bundestag (German Parliament) in January to allow Bundesnetzagentur to raise the tariff cap by up to 25%. The country has set a ceiling tariff of €0.1125 (~$0.12)/kWh for rooftop solar systems and €0.0735 ($0.078)/kWh for wind project tenders for 2023.

Germany installed 7.18 GW of solar capacity in 2022, a growth of 35.47% YoY from 5.3 GW installed in the previous year. The country’s cumulative solar capacity at the end of the year stood at 66.5 GW.