Onshore wind tariffs increase in latest German subsidy auction

Bundesnetzagentur (BNetzA), the federal network agency, awarded an average tariff of €46 per megawatt hour (MWh) to 83 wind farms, representing 709MW of capacity, in what it described as the "barely oversubscribed" February auction. It received a total of 132 bids, accounting for 989MW of capacity, according to its announcement.

The results of the latest auction had been "eagerly awaited", BNetzA said. A change in the law meant that so-called 'citizen cooperatives' and community energy projects needed to have obtained planning permission in order to be able to participate. Until now, these projects did not need to have applied for planning permission, with the result that they accounted for a disproportionate share of the successful bids in previous auctions.

The three previous subsidy auctions held by BNetzA were also significantly oversubscribed, with the result that prices had been driven down, according to energy law expert Dr Thorsten Volz of Pinsent Masons, the law firm behind Out-Law.com.

"Previously, the cooperatives were permitted to participate without a planning permission, unlike large scale projects and developers," Volz said. "So it was much easier for these cooperatives, since they were not obliged to significantly invest into achieving the planning permission – thus, they could bid for a lower price."

"Since these cooperatives have been used as a legal workaround solution by large developers to avoid getting a costly and time consuming planning permission before taking part in the tender, the German government changed the law," he said.

Community energy projects accounted for 19 of the successful 83 bids in February's auction.

BNetzA has also published the results of its latest solar energy subsidy auction, which took place on the same day as its auction for onshore wind. The solar auction was "significantly oversubscribed", with contracts awarded to 24 of the 54 participating projects.

Successful projects were awarded an average of €43.40 per MWh.

The next auction will take place in April 2018, with a joint call for tenders from onshore wind and solar projects due for publication on 1 April 2018. The next call for tenders for onshore wind will then take place on 1 May 2018, and the next call for tenders for solar projects on a June 2018.