BNetzA Publishes Information On First PV Tender, Deadline 15 April, Maximum Value 11.29 ct/kWh

The Federal Network Agency (BNetzA) has published the details for the first auction for financial support for freestanding PV power plants. A capacity of 150 MW in total will be auctioned. The maximum value for bids is 11.29 ct/kWh. Bids have to be submitted by 15 April 2015.

1. Information on the First Auction

According to Section 55 of the Renewable Energy Sources Act (EEG) as applicable since 1 August 2014 (EEG 2014; for more information, please see here) BNetzA has to establish financial support for freestanding PV installations by holding tenders based on an ordinance enacted by the government in late January. The Ordinance for Competitive Bidding for Financial Support of Freestanding Installations (FFAV) further specifies the tendering procedures.

Bids have to contain information on and documents pertaining to the land on which the installations are to be erected. Bids for the energy generated in the installations have to be made in ct/kWh and have to indicate the capacity of the installation in kW. The bids with the lowest offers will receive support until the total volume of the tender is reached.

For further formal requirements in the sense of Section 34 FFAV made by BNetzA for the 15 April tender, including the tender form, please see here. A checklist for PV tenders can be accessed here. According to its information (see last paragraph), BNetzA has not made any further determinations in the sense of Section 35 FFAV yet.

2. General Information on Auctioning Financial Support Under the EEG 2014 and Future EEG Amendments

The EEG 2014 that came into force in August last year not only changed financial support from fixed feed-in tariffs to mandatory direct marketing that can be topped up with market premiums for most new plants, but also mandates that financial support for renewable energy sources and mine gas and its specific amount shall be determined through auctions by 2017 at the latest. This is to make financial support even more market-oriented and to meet the requirements of the EU Guidelines on State aid for environmental protection and energy 2014-2020 (EEAG), which shall ensure that meeting the Union’s ambitious climate change and energy sustainability targets for 2020 and beyond will happen in a cost-effective way through market-based instruments.

To gain experience with auctioning financial support, tenders establishing support for freestanding PV installations are to be carried out as of 2015 (cf. Section 2 para. 5 EEG 2014).

In line with the above Section 55 para. 3 EEG 2014 stipulates that following a transitional period ending on the first day of the seventh month after the announcement of the first tender for PV installations, i.e. 1 September 2015, financial support for new freestanding PV installations can only be claimed by those that successfully participate in auctions.

General information by BNetzA on PV tenders, including the tender on 15 April 2015, can be found here.

Source: Federal Network Agency

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