Jan 30 (Renewables Now) - Germany announced today its first tender for offshore wind, targeting 1,550 MW of capacity to be put in operation after December 2020.
The maximum bidding rate set by the Federal Network Agency (Bundesnetzagetur) for the tender is EUR 0.12 (USD 0.13) per kWh or EUR 120 per MWh. The deadline for bids is April 1.
A tender in the Netherlands was won in July by Dong Energy A/S (CPH:DENERG) at just EUR 72.7 per MWh, while Vattenfall AB won late in 2016 the Kriegers Flak offshore wind tender in Denmark with a record low bid of EUR 49.9 per MWh.
Germany first tested the competitive process for renewable electricity contracts with several solar auctions which showed the cost of clean power can go down thanks to competition. Now it is launching its first offshore wind tender with a similar goal. Projects with approval before August 2016 or at the advanced permitting stage can participate.
A similar 1,550-MW tender will be held in early 2018. Of the 3,100 MW of capacity targeted, 500 MW can be installed in the Baltic Sea, while the rest will be in the North Sea. The Bundesnetzagentur has approved a plan for the offshore grid development by 2025, which includes capacity for the offshore wind projects that win the tenders.
In 2021-2025 the German government wants to limit offshore wind installations as it needs time to complete high-voltage transmission projects.
Offshore wind farms with a combined capacity of 818 MW started supplying power to the German grid in 2016, bringing the total operational capacity to 4.11 GW. Projects with a total capacity of 1.1 GW are already under construction and there are a further 1.2 GW with final investment decision, according to a report by Deutsche Windguard.
(EUR 1 = USD 1.07)