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Germany’s Federal Network Agency arranged the fifth solar auction in August and finally allocated 130MW to 25 bids. The average bid amount was slightly lower than the previous tender, which proves that Germany’s PV industry is still competitive.
Federal Network Agency offered 125MW for the fifth solar auction yet it was oversubscribed by 62 bids for a total of 311MW tendered, reported PV Magazine. 25 projects won the bids and the Agency has allocated 130MW to them. The average bid amount was €0.0723/kWh, lower than €0.0741/kWh in the fourth auction held In April.
“The price decline was evidence of the effective competition between ground-mounted PV systems,” said Federal Network Agency Jochen Homann, cited PV Magazine.
In addition, the agency employed the “pay-as-bid” system, meaning that the bid price offered is paid for electricity produced by the winning PV project. The highest winning bid was below €0.08/kWh, according to the Agency.
The Garman PV market has entered into a balance after the rapid installation growth in previous year. The nation added approximately 513MW of solar in the first six months of 2016, of which around 120MW were installed in June. Of that, about 90.48MW of newly registered PV systems in June were small-scale, and only 28.944MW were large-scale ground-mounted. EnergyTrend projects that Germany’s solar market will be at a steady level of 1~1.2GW per year in future.
(Photo Source: Public Domain Pictures)