The German Federal Network Agency has today revealed that 50 MW of its latest solar PV tender has been snapped up by Danish companies for construction of five solar projects in Denmark.
The auction results are the first time ever in Europe that a cross-border PV auction has been held, and sees Germany’s northern neighbor of Denmark earn the right to develop these solar projects on agricultural land – something that is currently forbidden under Germany’s Energiewende (EEG).
The five bids won with a surcharge tariff of 5.38 euro cents/kWh, which is two cents below the previous national tender held in Germany for open-air solar installations, which attracted winning bids of 7.25 euro cents/kWh in August.
The tender procedure offered by the German agency limited the number of potential foreign locations, but nevertheless the terms of the tender stipulated that those bids that offered the most favorable conditions would be implemented. In being able to offer up arable land, Danish companies had somewhat of an upper hand in terms of bringing down the costs.
This cross-border tender is viewed with both Germany and Denmark as a vital pilot project to assess the viability and practicality of tendering projects between EU member states.
According to the German Federal Network Agency, 43 bids with a total volume of 297 MW were received. Of that total, 17 were from Denmark and amounted to 154 MW, with 26 German bids totaling 143 MW. Hence, the 50 MW volume was exceeded fivefold.
Unsuccessful bids from Germany are still permitted to take part in the sixth round of the PV tender, which runs until December 1. These potential projects could also be submitted under a Danish Tender, which has a deadline of December 8 for a total volume of 20 MW.