November 29 (Renewables Now) - The auctions for onshore wind power in Germany next year will be open for bids below EUR 63 (USD 74.7) per MWh, the Federal Network Agency said today, and explained why this cap is higher than expected.
Based on the results of auctions in 2017, the ceiling price allowed in the tenders should have been EUR 50/MWh. This, however, is below the current value of wind power, EUR 56/MWh, and the network regulator has taken measures to ensure that the tenders will be able attract enough bids.
The Federal Network Agency, known in German as the Bundesnetzagetur, lifted the maximum price as it wants to see good competition in the tenders. They will award up to 2.8 GW in 2018, similar to the level in 2017.
This year the three tenders for German onshore wind resulted in average successful bids of EUR 57.1/MWh, then EUR 42.9/MWh, and finally EUR 38.2/MWh in the last auction, the results of which were revealed earlier in November.
(EUR 1 = USD 1.19)