“Announced botch”

Germany’s “technology-neutral” joint auctions for wind and solar power projects are the result of “a political bargaining process” instead of sound economic strategy, Angelika Nikionok-Ehrlich writes for Energie & Management. “Even the Federal Ministry for Economic Affairs and Energy (BMWi), which made the draft law, is not in favour of joint auctions,” she argues. Nikionok-Ehrlich says Germany gave in to EU demands in order to keep its energy-intensive industry rebates from the renewables surcharge (EEG-Umlage). The joint auctions could be seen as a “return service” by Germany’s government for the EU’s acceptance of industry rebates, she says. The renewables industry, however, feared putting wind and solar in competition would lead to higher “system costs”, diminished acceptance and economic disadvantages.

Read the article in German here (behind paywall). 

See the CLEW article on Citizens’ projects dominate first onshore wind power auction for background.