Austria seeks to award 700 MW of solar, 190 MW of wind

Austria is set to open a tender with a deadline of December 13, seeking to allocate 700 MW of solar, 190 MW of wind and 7.5 MWel of biomass capacity.

The price for electricity from solar energy in this round is capped at EUR 0.0933 (USD 0.092) per kWh while projects for wind farms must not exceed EUR 0.0822 per kWh.

The cap for new biomass-fired power plants is set at EUR 0.1822 per kWh while for the repowering of existing facilities, the maximum price is EUR 0.1747 per kWh.

The bids can be submitted in the three weeks prior to the deadline, starting from November 22, 2022. Bidders are allowed to submit several proposals for different systems.

The winners in the tenders will be awarded a market premium designed to compensate for the difference between the production costs of electricity from renewables and the average market price for electricity. The subsidy, which was introduced on Wednesday, is the second mechanism meant to support renewables expansion in Austria along with the investment subsidy.

In the current environment of much higher electricity prices, market premiums are unlikely to be paid out but will rather serve as security in case market prices fall again.

(EUR 1 = USD 0.986)

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