Good to know: Tendering process for photovoltaics

The first round of tendering for PV electricity produced 8.48 - 9.43 Cents/kWh. The results of the second round are now available.

Second round of tendering: Strong competition affects result

The first tendering procedure in April for 150 MW gave rise to awards of financial support of between 8.48 and 9.43 cents/kWh. The results of this PV tendering procedure for 150 MW are now available: The level of financial support awarded was 8.49 cents/kWh. The unit price in this round of tendering is much lower than the financial support provided for ground-mounted installations of 8.93 cents/kWh. This suggests that there was strong competition.

In the second round of tendering, the tender volume was oversubscribed by a factor of three. 33 bids with a volume just short of 160 MW were accepted, 13 of which came from Brandenburg, 5 from Bavaria. The successful bids are distributed by segment size as follows:
up to 500 kW                      0
500 – 1,000 kW                  2
1,000 – 2,000 kW               5
2,000 – 5,000 kW              13
5,000 – 10,000 kW            13

New tendering procedure

The first invitation to tender was a pay-as-bid procedure, whereby all successful bidders receive precisely the same level of financial support as the price they have offered. Now the uniform pricing procedure is being used whereby all successful bidders receive the same amount of support which is equal to the level of the final successful bid.

Third round of tendering also with uniform pricing procedure

The third round of tendering is for 200 MW. The deadline for bids is 1 December 2015. The award value will once again be determined via the uniform pricing procedure.

Detailed information on the results of the first and second rounds of tendering are available from the Federal Network Agency's website at www.bundesnetzagentur.de.

Why tendering?

The Cabinet decided, in January 2015, to use competitive tendering to determine the level of financial support for electricity from ground-mounted photovoltaic installations. The measure aims to reduce the cost of PV support. The level of the sliding market premium will be established on a competitive basis by way of tendering procedures. This is a new procedure in Germany which will first be tested in a three-year pilot phase.

The initial results show that the main criticism of tendering procedures still applies: they do not take account of the large number of public solar parks.


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Good to know: Tendering process for photovoltaics

The first round of tendering for PV electricity produced 8.48 - 9.43 Cents/kWh. The results of the second round are now available. Read more