Prices rise slightly in Germany’s first PV tender of the year

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From pv magazine Germany.

Germany’s Federal Network Agency has published the results of the first 2019 tender for ground-mounted PV and large-scale wind power projects.

For PV systems with 750 kW or more capacity, the tender saw 24 projects awarded with a total capacity of 178 MW. Overall, there were 80 bids for PV projects totaling 465 MW in the tender – which meant the exercise was around two-and-a-half times oversubscribed. Only two bids were excluded, because of formal errors.

Last year’s price trend continued with values increasing only slightly from round to round. In the latest tender, the average final price was €0.0480/kWh. In the round held in October, it was €0.0469. Tender prices ranged from €0.0411-0.0518/kWh – values ​​slightly above those seen in the preliminary round. Successful bidders can now deposit guarantees until March 6.

Some 21 of the 24 selected PV projects will be deployed on arable land in disadvantaged areas. The southern region of Bayern had the largest allocation, with 22 projects. It is one of five federal states that have made use of the clause in Germany’s Renewable Energy Sources Act of 2017 to release additional arable land and grassland for tenders. The released annual quota for the Free State is now already 70% exhausted.

“The high quota for bids on arable land in Bavaria illustrates the unequal competitiveness of solar areas,” said Federal Network Agency president Jochen Homann.

Two types of tender featuring solar are being held in Germany: an extraordinary procurement for 500 MW with a March 1 deadline; and a mixed solar-wind tender with a deadline a month later. The latter exercise is expected to be held in two rounds and will allocate 400 MW of renewable generation capacity.