Germany increases tender price cap for ground-mount solar

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The latest move aims to attract more interest in auctions. Image: Unsplash

The German Federal Network Agency, the Bundesnetzagentur, has raised the price cap ​​for this year’s ground-mounted solar tenders to attract interest in auctions.

The new maximum level for the ground-mounted solar system will be €0.0735/kWh (US$0.08), increasing from €0.059/kWh (US$0.064) in 2022. According to the Federal Network Agency, the adjustment to the price cap was a response to the increased costs in construction and the operation of systems. 

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Klaus Müller, president of the Federal Network Agency, said that the increase was to create stable conditions in this segment for achieving the expansion targets, adding that the significantly reduced number of bids would increase and competition could develop again. 

The increase applies to auctions in 2023 and the bidding deadlines of 1 February 2023. 

Earlier this month, the Federal Network Agency also raised the maximum tariff for solar and wind energy ahead of its 2023 tenders for renewables projects. The new maximum level for rooftop solar systems will be €0.1125/kWh (US$0.12), which the agency said will account for increased costs in the construction and operation of systems, as well as rising interest costs for financing solar projects. 

Additionally, the Bundestag – the German federal parliament – had granted the Federal Network Agency greater license to increase the maximum value by up to 25%, where previous increases were capped at 10%.

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