Germany’s 1.6 GW Onshore Wind Auction Undersubscribed by 231 MW

The country had reduced the initial auction volume from 3.2 GW due to concerns of low interest


Germany’s recent onshore wind energy auction garnered bids for only 1,436 MW despite the initial auction volume being reduced to 1,667 MW from 3,192 MW due to concerns of low interest, according to the Federal Network Agency (Bundesnetzagentur).

Out of the 142 bids received for a combined volume of 1,436 MW, one bid was disqualified due to a formal error. As a result, the agency awarded 1,433 MW across 141 successful bids.

Following three out of this year’s four onshore wind auctions, the cumulative awarded volume has now reached approximately 4,400 MW, marking a 35% increase compared to last year’s total of only around 3,200 MW.

The tariffs ​​quoted in the bids range between €0.06 (~$0.064)/kWh and €0.0735 (~$0.079)/kWh. At €0.0732 (~$0.078)/kWh, the average quantity-weighted bid value is just below the newly defined maximum value.

Like the previous tenders, bids for locations in North Rhine-Westphalia (457 MW) and Lower Saxony (343 MW) were awarded the largest capacities, followed by Schleswig-Holstein (259 MW) and Baden-Württemberg (88 MW).

The next onshore wind auction will close for bids on November 1, 2023.

In August, Bundesnetzagentur concluded its 1.6 GW solar auction with 124 accepted bids, discovering a lowest tariff of €0.054 (~$0.058)/kWh. The ceiling tariff for the auction for the ground-mounted solar projects was set at €0.074 (~$0.079)/kWh. The tender received an overwhelming response, with the bid volume increasing to 1.67 GW.

The lackluster reaction to solar and wind auctions in 2022 led the German Parliament to grant the Federal Network Agency the authority to increase the tariff cap by as much as 25%. As a result, a ceiling tariff of €0.112 (~$0.12) per kWh for rooftop solar installations and €0.073 ($0.079) per kWh for wind project bids in 2023.


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