The price rally in the tenders for solar PV systems over 750 kW in Germany is not stopping. According to the German Federal Network Agency, submitted bids crossed the €0.04 threshold for the first time, and reached an average value of €0.0433/kWh. The agency has also revealed that the lowest bid was €0.0386/kWh, while the highest offer was €0.0459/kWh.
In the last tender for 2017, prices had also fallen sharply and were between €0.0429 and €0.0506/kWh. The average value of this round had been €0.049/kWh. “With this price decrease, the solar tenders have proven to be good at determining prices, again,” said the president of the Federal Network Agency, Jochen Homann.
The Bundesnetzagentur has selected 24 projects in the tender. Eleven successful bids are related to projects on agricultural land in less favored areas in the southern regions of Bavaria and Baden-Württemberg. So far, the two federal states have been the only ones to have made use of the clause in the country’s renewable energy law (EEG 2017), which allows the construction of ground-mounted solar facilities in these areas.
A total of 79 bids for a combined capacity of 546 MW were pre-selected by the agency for the tender in February. Successful bidders will now have until March 10, when the tender’s final official results will be announced, to deposit the second project’s guarantee.
It is interesting to note that, simultaneously with this solar tender, the Bundesnetzagentur has revealed the results of a 700 MW wind power auction, which has concluded with an increasing average price of €0.0460/kWh. In the previous tender of the same kind, the final average price had been €0.0380/kWh. Bids in this tender ranged from €0.0380/kWh to €0.0528/kWh.
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I am wondering about the payment structure for these tenders.
Are these prices paid for metered output at the PV facility (I.e., not including system costs for transmission, system balancing, etc.)
Are these prices that will be paid to PV facilities when (if) they deliver power at the facility meter? (i.e., puts risk of intermittent operation on project owner)?
Are these prices derived from fixed annual payments divided by predicted annual output? (i.e., puts risk of intermittent operation on buyer)