Federal Network Agency publishes tender results for onshore wind energy

The Federal Network Agency today published the results of the first round of tenders for onshore wind energy. Some 256 bids with a capacity of 2,137 MW were made for a tender volume comprising 800 MW. Of these, 70 projects with a volume of 807 MW were accepted. The average acceptance value was 5.71 cents per kilowatt hour. A mere total of twelve bids were excluded from the process. Some 96 per cent of the bids accepted were from Bürgerenergiegesellschaften [communal or regional energy producers]. As the tender procedure was many times oversubscribed, it showed itself to be extremely competitive.

Bremerhaven, 19 May 2017 – The industry sees it as a positive outcome that, of the bids handed in, some 70 per cent were from communal or regional energy producers.  Of these, 65 projects with a capacity of 776 MW were selected. Andreas Wellbrock, Managing Director of WAB e. V., made the following comment: “We can’t make a final assessment of the impact of the system change on the players involved, but what we can say is it didn’t have too adverse an effect on the number of players taking part. Communal or regional energy producers are just as important for the acceptance and success of the energy turnaround as the involvement of bigger organisations”.

According to the industry, this is a boost for wind energy: “The results of the first round of tenders for onshore wind energy show that wind energy has left behind the competition from fossil fuels. We should now direct our joint efforts into grid expansion, sector coupling and further developing storage provision. Germany has every available means at its disposal to protect the climate and bring about the energy turnaround successfully and economically”, says Andreas Wellbrock.

The industry is also very supportive of the view that on- and offshore wind energy must work together to ensure the success of the energy turnaround: onshore plants are smaller compared to offshore plants and implementation times are much shorter. Grid connection is more flexible and easier to put in place, whereas entitlement to grid connection at sea is vital for survival. However, the success of the ‘unequal brothers’ that are on- and offshore wind energy must not lead to the playing off of one against the other. Andreas Wellbrock has this to say: We call for the raising of targets for both energy forms because the industry is capable of achieving greater volumes. This leads to cost reductions and long-term employment”.

The amount of remuneration from renewable power in Germany is determined by means of a tendering procedure in which various projects that have already been developed compete against one another. The system accepts the lowest-value bids. Funding is worked out on the basis of the accepted bid value and the monthly market value. Following the results of the first round of tenders for onshore wind energy, there are now reliable price indications for three important energy sources in Germany: photovoltaics, offshore and onshore wind energy. The first photovoltaic plants that took part in auctions last year have meanwhile been implemented at a rate of 96 per cent. The results of the round of tenders for offshore wind energy published by the Federal Network Agency in April 2017 state that three of the four projects awarded will be subsidy-free. Impressive evidence indeed of the competitiveness of the offshore wind industry.

About WAB
WAB e.V. is the leading business network for wind energy for the north-west region and nationwide contact partner for the offshore wind energy industry in Germany. The association comprises more than 350 businesses and institutes from all sectors of the wind energy industry, the maritime industry as well as research.