The average price fell at Germany’s latest solar power auction, which again was oversubscribed, showing a big appetite in the market for solar power.
The federal grids agency (BNetzA) awarded 14 bids with a combined capacity of 205MW. Bids had been handed in for 556MW in capacity for the auction that had been designed for 150MW.
The average price for successful bids went down to €54.70 ($61.27) per megawatt hour, down from €65.90 at the previous solar auction.
The run on solar tenders comes as Germany nears a cap of 52GW of accumulated solar capacity after which no support is planned to be paid for new solar projects.
The German solar industry federation BSW demanded from the government to lift the 52GW cap on support as soon as possible.
"Solar power for less than five cent per kilowatt hour, a multiple over-subscription, high levels of acceptance - Germany's energy mix needs significantly more solar electricity from solar power plants and solar roofs," BSW managing director Carsten Körnig said.
"Solar power is among the lowest hanging fruits of climate protection. It would be difficult to explain not to harvest it in time and completely."
The success of recent solar tenders is in stark contrast to that of onshore wind tenders, which have been undersubscribed lately amid a lack of sufficient permits for new projects.
Only solar bids had been successful in the country’s latest 211MW joint wind-solar tender in April, when the BNetzA awarded support averaging €56.60/MWh to 18 solar projects.
The next regular solar-only auction in Germany will take place in October.
Most capacity in the latest solar auction was awarded in the northern state of Mecklenburg-Vorpommern (135MW).
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