Citizen projects win big in German auction

GERMANY: In Germany's first auction for setting support for onshore wind, citizen-owned projects swept the board with 93% or 65 of the 70 successful bids, accounting for 96% of the total 807MW capacity allocated.

More than 800MW was contracted in Germany's first onshore wind auction (pic: Enercon)
More than 800MW was contracted in Germany's first onshore wind auction (pic: Enercon)

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The average price of winning bids was €57.1/MWh, said federal energy regulator Bundesnetzagentur.

The lowest bid was €42.0/MWh, the highest successful bid was €57.8/MWh. Under auction rules, bids had been capped at €70/MWh.

According to the auction procedure, the "pay as bid" rule does not apply to successful citizens' wind projects. Instead, they are granted the highest winning bid at the auction (€57.8/MWh).

However, projects in the windy northern German region defined as "network expansion area" will only receive €55.8/MWh.

This is an area where grid expansion lags behind renewables expansion and new onshore wind additions are being temporarily restricted. In this first bidding round, additions were capped to 258MW of the total 807MW.

Roughly 95% of the citizens' initiatives participating at the auction took advantage of being allowed to bid with projects that are not yet approved.

Taking account of the extra time needed to achieve permitting, the citizen's projects have 50 months in which to implement their projects, compared with 30 months for all other projects.

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