Solar dominates wind in Germany's first 'innovation tender'

Germany's latest wind-only tender was undersubscribed, and wind lost out to solar in a new auction with altered rules

by Craig Richard 1 October 2020

Germany's auction regulator has previously acknowledged that state-level permitting difficulties were deterring developers from competing at auction (pic credit: BWE)

Germany鈥檚 fourth wind-only auction this year again fell short of target, while solar PV-based projects dominated the country鈥檚 first 鈥榠nnovation tender鈥, in which stand-alone renewable energy projects competed alongside those paired with storage systems.

The country鈥檚 energy regulator, the Bundesnetzagentur (BNetzA), received 25 bids for 310MW in the latest wind-specific round 鈥 84% of the 367MW available. It excluded three bids for 26MW due to 鈥渇ormal errors鈥.

Successful bid prices ranged between 鈧61.70/MWh and 鈧62/MWh, with a weighted average price of 鈧61.90/MWh. The range narrowed from 鈧55-62/MWh in the country鈥檚 most recent wind-only tender in July, while the weighted average rose from 鈧61.40/MWh.

The auction regulator has previously acknowledged that state-level permitting difficulties were deterring developers from competing at auction.

In a separate, but concurrent, tender, the BNetzA awarded contracts to 73 projects with a combined capacity of 677MW in its 鈥榠nnovation tender鈥, having excluded 14 bids for 71MW due to "formal errors".

Developers competed for a fixed 鈥 rather than sliding 鈥 premium on top of wholesale market prices, and would receive no funding in the event of negative prices.

Of the successful projects, 28 bids were for hybrid schemes 鈥 paired with storage 鈥 with a combined capacity of 394MW. Just one of these was for wind (7.2MW generation capacity, 3.9MW storage capacity). The hybrid projects were selected for their ability to stabilise power output to the grid and help to better integrate renewable energy.

There were also 45 individual projects 鈥 not paired with storage 鈥 with a combined capacity of 283MW that were successful in the innovation tender. No wind projects were successful in this part of the tender.

The hybrid projects will receive market premiums ranging between 鈧19.40/MWh and 鈧55.20/MWh, while successful bids had a volume weighted average of 鈧45/MWh.

The individual systems will receive market premiums ranging from 鈧9.60/MWh to 鈧30/MWh, while successful bids had a volume weighted average of 鈧26.5/MWh.

The next wind- and solar PV-only tenders will take place on 1 December 2020, with the next 'innovation round' scheduled for next year.