Contract Value for Second Tender for Ground-mounted PV Installations Decreases to 8.49 ct/kWh

The uniform contract value for the 33 bids with a total capacity of 159.735 kW that were awarded contracts in the second German tender for financial support pursuant to the Renewable Energy Sources Act (EEG 2014) is 8.49 ct/kW, the Federal Network Agency (BNetzA) announced. In the first tender, where bids were binding, the average contract value was 9.17 ct/kWh.

Unlike in the first tender in April 2015, successful bidders in the August 2015 tender, uniformly receive 8.49 ct/kWh, i.e. the value of the highest bid accepted. This is about 7% lower than in April when bidders received on average 9.17 ct/kWh.

It is also lower than the 8.93 ct/kWh that were paid for ground-mounted PV capacity not tendered under the EEG starting 1 August 2015 (for EEG remuneration for solar, please see). Please note that following a transitional period that ended on 1 September 2015, financial support for new freestanding PV installations can now only be claimed by those that successfully participate in auctions (cf. Section 55 para. 3 EEG 2014).

With the announcement of the contract value the second tender is closed. A replacement procedure (Nachrückverfahren) according to the Ordinance for Competitive Bidding for Financial Support of Freestanding Installations (FFAV) (Section 12 para. 3 FFAV) did not become necessary as a sufficient number of successful bidders made the second security deposit by 1 September 2015, BNetzA said. As Jochen Homann, President of BNetzA, said, it will be interesting to see how the implementation of the projects progresses.

BNetzA had changed to a uniform pricing method for this round to gain experience with auctioning support for freestanding PV capacity as renewable support in general shall be tendered in Germany as of 2017 at the latest (cf. Section 2 para. 5 Renewable Energy Sources Act (EEG); regarding preparations, please see here).

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 note that BNetzA has given guidance on the formal procedure. In the first as well as the second tender 37 respectively 15 bids were excluded as they did not comply with the bidding requirements.

Source: Federal Network Agency

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