January 23 (Renewables Now) - Germany's Federal Network Agency today raised the maximum price ??for this year's ground-mounted solar tender to EUR 0.0737 (USD 0.08) per kWh from EUR 0.059 per kWh in 2022 in a bid to offer better conditions for developers and attract more interest in the competition.
The higher price cap will apply to the first round of the auction in this category with a deadline of March 1, 2023.
The power regulator was authorised at the end of 2022 to raise the maximum prices by up to 25% as higher costs for the ??construction and operation of renewable energy plants as well as higher interest rates for project financing had led to such a significant drop in bids that left most of the rounds vastly undersubscribed.
By raising the maximum value for ground-mounted solar installations, the Federal Network Agency is ensuring stable conditions in this segment in order to achieve the necessary expansion targets, said Klaus Mueller, President of the Federal Network Agency.
According to Mueller, the higher cap should enable developers to make adequate bids.
Last year, Germany sought to allocate 3.6 GW of solar in three calls but ended up with only about 2.4 GW of awarded capacity as demand was weak. In 2023, the capacity to be allocated is raised to nearly 6 GW with the first of the three rounds to be held by March 1.
The maximum prices for the auctions for onshore wind and rooftop solar energy were increased at the end of December to EUR 0.0735 and EUR 0.1125 per kWh, respectively.
(EUR 1 = USD 1.083)