German PV tender delivers record low solar power price of €0.0355/kWh
From pv magazine Germany.
Germany’s Federal Network Agency, the Bundesnetzagentur, has announced 18 solar projects with a combined generation capacity of 100.6 MW were allocated in the latest tender held for PV projects ranging in size from 750 kW to 10 MW.
The tender was almost five times oversubscribed as the agency fielded proposals for 493 MW of project capacity.
The lowest winning bid accepted for the solar power to be generated by the new facilities was €0.0355/kWh ($0.038315) – a German record. The highest successful bid was for €0.0521.
Average price
The average final price in the procurement round was €0.0501/kWh, significantly less than the €0.0568 average delivered by the previous tender of the same kind, in December. The latest average tariff did not, however, better the €0.0490/kWh tendered by the bidders in October.
The southern German region of Bavaria secured 13 of the 18 projects allocated in the latest tender, for a total capacity of 75 MW. The remaining five projects were spread across Brandenburg, Mecklenburg-Western Pomerania, Rhineland-Palatinate and Schleswig-Holstein.
The Bundesnetzagentur also allocated 523 MW of wind power capacity in a parallel 900 MW tender. Winning bids for the 66 successful projects ranged from €0.0576-0.0620/kWh, for an average €0.0618. The previous exercise drew an average bid of €0.0611.
The next PV and onshore wind tender will be held on March 1.
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How come it’s cheaper in Germany than in the middle east (nah ost) and in the countries like Pakistan?
Probably one reason is the lower project (and country) risk, and thus, better financial conditions.
According, e.g., to this page : http://www.waccexpert.com/, the WACC in Germany for utilities is 4.9%, while it is 13% in Pakistan…
[…] The Bundesnetzagentur, Germany’s Federal Network Agency has released the auction results. As pv magazine has reported, the total PV generation capacity of 100.6 MW was allocated in the latest tender, while the agency has received 493 MW worth of project proposals. […]