In two simultaneous recent auctions held in Germany, a total of 664 MW of wind and solar capacity was allocated. Both the tenders were oversubscribed by significant margins. First was an onshore wind tender for 366 MW of tendered capacity. This received 96 bids with a combined volume of 657 MW out of which 58 projects with a combined capacity of 399 MW were successful.
This is the first time in 2020 that a wind power tender has been oversubscribed. In fact, in 2020, a total of 3,860 MW of onshore wind was tendered, but only 2,672 MW was awarded. The projects that have won are mainly located in the northern and western states of Germany. For instance, 31 projects are in Schleswig-Holstein, 11 in North Rhine-Westphalia and 8 in Lower Saxony. These projects will receive feed-in support of between 5.59 and 6.07 cents/kWh.
Similarly, the solar PV tender was also oversubscribed. The actual tendered capacity was 256 MW, while bids were received for 186 projects with a total volume of 936 MW. 45 winning bids with a total capacity of 264 MW will receive between 4.88 and 5.26 cents/kWh.
Wind power development has suffered in Germany on account of lengthy approval processes and local opposition, which has affected tenders as well. On the other hand, solar tenders have consistently seen good response. It is expected that upcoming renewable energy laws will lead to greater investments in wind power development.