Prices fall below 4-cent-per-kWh mark at German solar auction

Facebook
Twitter
LinkedIn
Reddit
Email
Bavarian solar projects dominated the German tender as they have in prior auctions, reaping 75% of all contracts on offer. Image credit: Caleb Stokes / Unsplash

Solar players have notched yet another solid performance at a state tender in Germany, tabling bids five times the size and scoring record-low prices when contracts were awarded this month.

This week, Germany’s Federal Network Agency (FNA) published the results of the country’s latest PV-only tender, which awarded surcharges to 100.554MW split between 18 winning projects.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The tender of 1 February – open to 750kW-to-10MW projects – was designed with a 100MW size but was highly oversubscribed, triggering 493MW in applications across 98 bidders.

The tariffs that were then awarded to the 18 winners lay in the €0.0355-0.0521/kWh (US$0.038-0.056/kWh) range, resulting in an average PV price of €0.0501/kWh (US$0.054/kWh).

For German solar, the prices below 4 euro cents per kWh mark a sizeable gain on the cheapest tariffs seen at the prior PV tenders, such as 4.59 cents (October 2019) and 4.7 cents (December 2019).

Upbeat solar outgrows corset of tender sizes

FNA's statement this week identified the February PV auction winners, from DSW Solar to E.ON, EnBW, ENERPARC, IBC Solar and others. Bavarian projects reaped 75% of all contracts.

According to the German regulator, however, information on individual tariffs (including the project proposing prices of €0.0355/kWh) will not be released until 26 February.

The tabling in February of solar bids five times what was on offer contrasts with the undersubscription witnessed with a wind-only tender, also held in Germany this month.

The wind auction, focusing on onshore projects, had put forward 900MW in capacity but only attracted 527MW of project bids. Average tariffs ran at €0.0618/kWh (US$0.066/kWh).

The PV-wind disparity has become a recurring feature of German renewable tenders, sparking a campaign for solar tenders to be increased as the country works towards a 98GW-by-2030 PV target.

The prospects and challenges of solar's new era in Germany and the rest of Europe will take centre stage at Large Scale Solar Europe 2020 (Lisbon, on 31 March-1 April 2020).

26 November 2024
Málaga, Spain
Understanding PV module supply to the European market in 2025. PV ModuleTech Europe 2024 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.
11 March 2025
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

June 24, 2024
Israel-headquartered independent power producer (IPP) Econergy has sold a 214MW solar PV project in Romania.
June 24, 2024
The US has yet again been named the most attractive market for renewables investment and deployment opportunities, according to EY.
June 21, 2024
UAE state-owned renewable energy developer Masdar has reached an agreement to buy 67% stake in Greece's Terna Energy.
June 21, 2024
Solar PV is expected to generate 20% of global power across midday peaks on the summer solstice in the northern hemisphere, up from 16% in 2023.
June 21, 2024
SolarEdge has unveiled new inverters, and a new operations and management (O&M) platform, at Intersolar Europe 2024.
June 21, 2024
Kontron has launched a subsidiary for the solar sector, as it looks to improve cybersecurity performance across the solar industry.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 2, 2024
Athens, Greece
Solar Media Events
July 9, 2024
Sands Expo and Convention Centre, Singapore
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia