German wind power industry says fixed remuneration in auctions too low

The price per kilowatt-hour (kWh) specified in Germany’s onshore wind power auction scheme is too low, the country’s Wind Energy Association (BWE) has said. Data for the December tender released by the Federal Network Agency (BNetzA) states the maximum value for bids is set at 5.88 cents per kWh, which according to the association is not enough to cover current costs. "Without an adjustment of the maximum value to the industrial price index, [renewables] expansion is in danger of slackening,” BWE president Hermann Albers said in a press release. “The costs for project developers have multiplied due to the crisis. The maximum value in the tenders, which are still set too low, ignores these price increases.” He added that both supply chain and commercialisation costs have increased, a factor that should be taken into account when setting the maximum price.

Germany’s tender system for wind and solar energy was launched in 2017 with the aim to bring down costs for renewable energy production in the country by letting bidders compete for the lowest guaranteed remuneration rates.  However, recent auctions have been undersubscribed, leading to fears that the country will not meet its  ambitious wind power capacity expansion targets.