Germany Awards 1.08 GW of Solar Projects in March Auction

The German Federal Network Agency also awarded 68 MW of biomass in the auction


The German Federal Network Agency Bundesnetzagentur has awarded 1,084 MW of solar projects in the latest round of auctions.

Bundesnetzagentur had invited bids to develop 1,108 MW of solar projects and 275 MW of biomass systems. Compared to the previous three average bids, the ceiling tariff for the solar tender was increased by 8% to €0.0557 (~$0.062)/kWh. The agency plans to tender 3.6 GW of solar capacity in three tranches in 2022.

The technology-specific tender for ground-mounted solar projects and solar sites on structures other than buildings attracted 209 bids totaling 1,116 MW. Eight bids were rejected.

The 201 winning bids quoted tariffs ranging from €0.040 (~$0.044)/kWh to €0.055 (~$0.060)/kWh. The volume-weighted average tariff was €0.0519 (~$0.057)/kWh, up from €0.050 (~$0.055)/kWh in the previous round.

The highest number of projects were awarded in the Bavaria region with 488 MW through 106 bids.  Rhineland-Palatinate was awarded 223 MW out of 19 bids. Mecklenburg-Western Pomerania received 67 MW through 10 bids, and Saarland 66 MW from 16 bids.

Most bids for arable land or grassland were allocated in Bavaria with 366 MW through 66 bids.

Bundesnetzagentur tendered 275 MW for biomass systems with a bid deadline of March 1, 2022. The tender was undersubscribed and received 76 bids for just 81 MW. Only 56 proposals amounting to 68 MW were accepted.

The tariffs ​​of the accepted bids are between €0.1218 (~$0.13)/kWh and €0.18 (~$0.20)/kWh. The average volume-weighted award value is €0.1575 (~$0.16)/kWh, significantly lower than the previous rounds.

For new biomass projects, the ceiling tariff was €0.1624 (~$0.18)/kWh and €0.1822 (~$0.20) for existing projects. The agency will tender 600 MW of biomass capacity in two tranches in 2022.

The next round of tenders for solar projects and biomass systems is expected to be held on June 1, 2022, and September 1, 2022, respectively.

In August 2021, Bundesnetzagentur announced results for the 250 MW solar innovation auction. Sixteen solar plus storage projects with a combined capacity of 156 MW were declared winners in the auction.

Earlier in 2021, the agency auctioned 665 MW of solar projects. It selected 95 ground-mounted solar projects with 513.25 MW capacity. The lowest bid quoted for the ground-mounted solar tender was €0.046 (~$0.055)/kWh, and the highest bid was €0.059 (~$0.070)/kWh.

Mercom had earlier reported that Bundesnetzagentur auctioned 664 MW of wind and solar auctions. The agency received 45 bids totaling 264.15 MW of solar capacity for its 256.9 MW tender. The lowest bid quoted was €0.048 (~$0.059)/kWh, and the highest bid was €0.052 (~$0.064)/kWh.