Rates fall to EUR 56.6/MWh in Germany's 200-MW solar tender

Germany’s second 200-MW solar power tender for 2017 saw increased competition and the average winning bid fell by 14% to EUR 0.0566 (USD 0.064) per kWh or EUR 56.6 per MWh.

In the previous tender, completed in February, the average rate arrived at EUR 0.0658/kWh. The lowest achieved then was EUR 0.06/kWh, while the highest contract value now is just EUR 0.059/kWh.

Peter Franke, vice president of the Federal Network Agency (Bundesnetzagetur), said that rates have dropped because this time projects on arable land were allowed to participate. The exception is valid for solar power plants proposed for less-favoured areas in Baden-Wuerttemberg and Bavaria where there are obstacles to agricultural production or there is limited potential for productivity. In the June tender, the list of winners includes 19 bids for 124 MW of combined capacity at such locations, of which 18 are in Bavaria and one in Baden-Wuerttemberg.

Projects on agricultural land can compete in other solar tenders this year as the quota for that specific category in the said states has not been filled yet.

From the start of 2017, solar and wind projects bigger than 750 kW have to compete in tenders to secure power purchase deals, as feed-in tariff (FiT) contracts are no longer available for big installations. Total of 133 bids were received in the latest tender, with the offered capacity reaching 646 MW.

(EUR 1 = USD 1.12)

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