German PV tender: Prices fall below EUR 0.07 per kWh

On Thursday, the Federal Network Agency approved a total of 27 bids for ground-mounted PV installations, with a combined capacity of 162.554 MW. The sixth and last round of tendering has been repeatedly oversubscribed. On fact, a total of 76 bids were submitted, for projects with a total capacity of 423 MW. “We are also assuming that this trend will be continued for the tenders under the EEG 2017, as the tenders for further solar systems are now being extended,” said the President of the Federal Network Agency, Jochen Homann.

The average tariff price for the bids in the sixth round of the tender was EUR 0.069 per kWh. Thus, once again it was a strong improvement – in the fifth round, it was EUR 0.0725 per kWh. The lowest successful bid was EUR 0.0626 per kWh. According to the Federal Network Agency, the highest bid that was still successful, was EUR 0.0717 per kWh, which is still below the average price of the previous round. Interestingly, 16 of the 27 winning bids were for projects to be developed along motorways and railways. A bid for a project within an area in federal ownership has also been successful.

With nine winning bids, Brandenburg received by far the most successful projects in the sixth round of the tender. Behind Brandenburg is Bavaria with five successful bids, then Mecklenburg-Vorpommern with four, and Schleswig-Holstein with three. The most popular capacity sizes for the successful bids were between 5 to 10 MW, with 16 bids in this range successful. The smallest bid awarded was for a 560 kW plant.

The exclusion rate was pleasantly low. Only five bids, with combined capacity of 19 MW, were excluded from the auction, which, for the first time, is less than 10%. “We expect this low rate of exclusions to continue to be seen in the forthcoming rounds, as the participants will get used to the procedure and the formal requirements for bidding will be slightly reduced by the EEG 2017,” added Homann.

The successful bidders now have until 28 December to hand over the second deposit, before the Federal Network Agency publishes the final results, unless a follow-up procedure is required.