Second German PV Auction: 33 Bids with Total Capacity of 160 MW Awarded

In the second German tender concerning financial support pursuant to the Renewable Energy Sources Act (EEG 2014) for 150 MW of freestanding PV capacity, 33 bids with a total capacity of 159.735 kW were selected by the Federal Network Agency (BNetzA). The exact financial support is yet unclear as a uniform pricing method applies.

The number of bids accepted increased from 25 in the first auction to 33 in the second auction. Bidder for several projects, called “multi project bidders” (Multiprojektbieter) by BNetzA, were particularly successful, but also one company constituted under civil law (Gesellschaft bürgerlichen Rechts), BNetzA pointed out. Among the successful bidders there are also two subsidiaries of two of the major players in the German energy market, E.ON and EnBW. The tender was three times oversubscribed, yet not as much as the first, which was four times oversubscribed.

The exact financial support is yet unclear as a uniform pricing method applies for the second tender (whereas successful bidders in the first tender receive support in the amount of their bids). BNetzA still has to wait if a replacement procedure (Nachrückverfahren) according to the Ordinance for Competitive Bidding for Financial Support of Freestanding Installations (FFAV) (Section 12 para. 3 FFAV) will become necessary. Until 1 September successful bidders have to make a second security deposit in line with Section 15 FFAV. Otherwise the awards will lapse (cf. Section para. 1 FFAV). If this happens for capacity of more than 30 MW BNetzA will initiate a replacement procedure (Nachrückverfahren) according to Section 12 para. 3 FFAV.

15 bids were not considered as they did not fulfill the bidding requirements. This is less than in the first round where 37 bids were excluded. The reasons for exclusion were not so much a lack of necessary documents, but rather individual mistake like the use of old forms or an insufficient first security deposit, BNetzA explained. For those interested in participating in the third tender for 200 MW of freestanding PV capacity for which the deadline is 1 December 2015, please not that BNetzA has given guidance on the formal procedure.

For background information on German auctions for financial support of freestanding PV installations, please see here.

Source: Federal Network Agency

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