15 Feb 2019, 12:21
Julian Wettengel

German grid agency worries about low participation in wind tenders

Federal Network Agency (BNetzA)

The Federal Network Agency (BNetzA) is worried about the low participation rate in the latest round of onshore wind tenders, the organisation wrote in a press release. For the 700-megawatt (MW) capacity tendered, 72 bids were entered for a total volume of just 499 MW. “Together with the industry and the responsible authorities, we have to work out solutions regarding the licensing,” said Jochen Homann, BNetzA president. Of the 67 successful bids (476 MW), 11 were citizens’ energy projects. The average awarded remuneration rate was 6.11 cents per kilowatt hour (ct/kWh). 

In contrast, the participation rate for 2019’s first solar PV auction was much higher. For the 175 MW capacity tendered, 80 bids for a total of 465 MW were entered. 24 bids were successful, 22 of which are set to be built in Bavaria. The average awarded remuneration rate was 4.8 ct/kWh.

The German Wind Energy Association (BWE) said the modest participation rate in this year's first onshore wind tender showed that there is "a great deal of uncertainty" in the industry due to regulatory changes in the licensing procedure that blur the economic prospects of investors. The BWE said Germany's renewables auction system had a "bad start" in 2017 that was yet to be overcome. "Auctions no longer can make an adequate contribution to ensure that the expansion of the Energiewende pillar wind power happens in an orderly and planned manner," the lobby group said.

Following a sharp drop in new onshore wind power installations in Germany in 2018, the industry warns that mounting resistance to new turbines endangers the supply of renewable energy demanded by industry and national climate targets. Meanwhile, Germany’s stricken solar sector is trying to regain a leading role in the country’s energy transition

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