Low interest, 76.5 MW of awards in 2nd German biomass tender

Biomass facility. Author: Frerk Meyer.

September 19 (Renewables Now) - Germany’s only biomass auction this year has now concluded with 79 winners, representing a combined capacity of 76.54 MW, the Federal Network Agency said today.

This is more than the awards in 2017, but still far below the total tender volume of 225.8 MW announced in July.

The tender allowed existing biomass power plants to compete for 10 extra years of fixed payments if they have less than eight years left under their current contracts. Such plants secured contracts for 47.06 MW of capacity in the auction, while new projects with a combined capacity of 29.48 MW were also successful.

The bidding cap for new biomass power plants was EUR 0.1473 (USD 0.17) per kWh, while that for existing stations was EUR 0.1673/kWh.

As in 2017, the auction was again undersubscribed and the low level of competition is visible in the bids received. The lowest bid was of EUR 0.10 per kWh and the highest was of EUR 0.1673 per kWh. The average, quantity-weighted surcharge arrived at EUR 0.1473/kWh.

Biomass auctions in Germany are held once a year with a volume of 150 MW. To this is added the capacity not awarded in previous tenders. The 2017 tender, Germany’s first for biomass, left almost 95 MW of unsubscribed capacity as the response was very weak. This was added to the 150 MW planned for 2018, while 19 MW of biomass capacity built in 2017 was subtracted from the total volume.

“Due to the transfer of unused volumes to the coming years, we do not expect intense competition in the future [biomass] tenders,” said Jochen Homann, President of the Federal Network Agency, known in German as the Bundesnetzagentur.

(EUR 1 = USD 1.17)

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