Price falls to €69/MWh in latest German PV auction

Prices of winning bids fell again in Germany’s sixth pilot PV tender for ground-based arrays, but were higher than in a recent smallish cross-border process with Denmark, as Germany gears up for regular PV auctions starting next year.

Germany’s grid agency BNetzA awarded support to 27 projects with a combined capacity of 163MW at an average winning bid of €69/MWh, down from €72.50 at the country’s previous 130MW PV auction in August.

The price was, however, higher than the €53.80/MWh reached at a recent pioneering 50MW cross-border tender with Denmark.

All winning bids in the cross-border auction came from Denmark, where conditions were better than in Germany as arrays on agricultural lands were included in Denmark, which also has a more favourable tax regime.

Germans cry foul as Danes dominate cross-border PV tender

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Prices at German pilot PV tenders have continuously decreased since their start in early 2016, but slow construction activity from winning bids is starting to raise doubts in the sector over how realistic some of them were.

BNetzA president Jochen Homann said he assumes solar tenders will continue to be oversubscribed when regular PV auctions start next year under the rules of Germany’s recently reformed Renewable Energies Act (EEG).

Germany has capped its solar expansion at 2.5GW a year, but this year again is expected to undershoot that target by a wide margin.

From next year on, the country will auction off 600MW in ground-based solar projects, while rooftop installations of up to 750kW will still be entitled to regular feed-in tariff support without the need to go through auctions.

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