Latest
The Bundesnetzagentur (German Federal Network Agency) said the auction was more than four times oversubscribed. Image: Unsplash.
Germany has awarded contracts to 490MW of solar-plus-storage projects in its latest “innovation” auction for co-located renewables.
The Bundesnetzagentur (German Federal Network Agency) said the auction was more than four times oversubscribed, having received 163 bids for over 2,182MW of proposed capacity. The original auction offered contracts for 486MW of new capacity.
This article requires Premium Subscription Basic (FREE) Subscription
Already a subscriber? Sign In
Try Premium for just $1
Full premium access for the first month at only $1
Converts to an annual rate after 30 days unless cancelled
Cancel anytime during the trial period
Premium Benefits
Expert industry analysis and interviews
Digital access to PV Tech Power journal
Exclusive event discounts
Or continue reading this article for free
The successful projects were awarded at prices ranging from 4.79 cents/kWh to 5.59 cents/kWh, with a volume-weighted average of 5.31 cents/kWh. Bavaria was awarded the most capacity of any state (11 projects with 122MW of combined capacity), followed by Schleswig-Holstein and Brandenburg with around 50MW each.
The average price was “considerably lower” than the previous innovation auction, which closed at 6.15 cents/kWh and was also around four times oversubscribed, the Bundesnetzagentur said.
The last three innovation auctions have seen substantial price drops; the October 2024 round settled at an average of 7.45 cents/kWh, which then fell to 6.15 cents in July and 5.31 cents in this most recent iteration.
The last auction, in July, also set a record as the first time bids exceeded 2GW in cumulative capacity, Bundesnetzagentur president Klaus Müller said at the time. That record was exceeded this time around.
The falling prices, fierce competition and high demand speak to the economics of renewable energy in Germany. While the auction was issued for any co-located renewable energy or energy storage projects, all of the successful bids were for solar-plus-storage.
Solar-plus-storage projects have become increasingly cost-competitive in “major markets around the world”, said Brent Wanner, head of the World Energy Outlooks’ power sector unit at the International Energy Agency (IEA), at Solar Media’s Energy Storage Summit earlier this year.
However, Wanner said that markets need to adapt and be designed to accommodate more co-located assets.
The cost of solar equipment has been low for the last 18 months, and battery costs are following suit. The IEA’s Renewables 2025 report, published this week, said PV would account for around 80% of the huge global expansion in renewables forecast in the next five years, largely due to its low cost and ease of deployment.
This week, the German solar trade association Bundesverband Solarwirtschaft (BSW-Solar) called on the government to impose a legal target to reach 100GWh of energy storage capacity in Germany by 2030.
Understanding PV module supply to the European market in 2026. PV ModuleTech Europe 2025 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.
Read Next
Gaëtan Masson of IEA PVPS warns of overcapacity, collapsing prices and slipping module quality in the new Trends in PV Applications report.
The European solar module market has reached a “state of equilibrium” in recent weeks, with stable prices and regular demand.
US solar recycling firm OnePlanet has achieved the R2v3 certification from electronics sustainability non-profit SERI, which represents the “highest standards of traceability”.
NTPC Renewable Energy Limited has signed an MoU with the Government of Gujarat to develop 15GW renewable energy projects in Gujarat.
Australia’s renewable energy sector recorded its slowest month of the year for additions in September, with 5.8GW of new projects added to development pipelines, according to data from Rystad Energy.
The Australian government has announced the results of the fourth Capacity Investment Scheme (CIS) tender, with 6.6GW of renewables awarded long-term contracts.
Subscribe to Newsletter
Most Read
Upcoming Events
https://www.pv-tech.org/germany-solar-energy-storage-auction-low-prices-competitive/
