Shorter implementation period pushes up prices in German onshore wind power auction

A shorter implementation period has led to a rise of the average price offered in Germany’s latest auction for onshore wind power installations, the Federal Network Agency (BNetzA) says in a press release. The increase to 4.6 eurocents per kilowatt hour (ct/kWh) in the auction closed on 1 February, compared to 3.8 ct/kWh in the previous auction in November 2017, “shows that the earlier tenders that did not require a license beforehand and had an implementation period of 4.5 years were based on different assumptions in terms of technology and price developments,” BNetzA head Jochen Homann says. The latest auction for onshore wind installations stipulates implementation within 2.5 years and does not feature special provisions for citizens’ energy projects, which previously were granted longer implementation periods and did not have to obtain a construction license before submitting their bid. Contrary to earlier auctions, the tendered volume of 700 megawatts (MW) was only marginally oversubscribed, showing that “wind power installations are not automatically hot sellers at auctions,” Homann says. In a parallel solar auction, prices dropped to 4.33 ct/kWh, showing that “solar power tenders as a price-finding mechanism do work,” Homann argues.

Find the press release in German here.

See the CLEW factsheet High hopes and concerns over onshore wind power auctions for more information.