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Record low price! Germany's latest photovoltaic bid price drops sharply

Time: February 20, 2025

In the latest ground-mounted PV tender of the German Federal Network Agency, the winning bids hit the lowest record since February 2019.

 

The winning bids ranged from 0.0388 euros/kWh to 0.0495 euros/kWh, with an average volume-weighted price of 0.0476 euros/kWh, about 6% lower than the average winning bid in the previous round (0.0505 euros/kWh).

People's enthusiasm for participation in the German ground-mounted PV tender continued to rise. The tender was oversubscribed by two times, with 524 bids received, totaling 4,708MW. Previous ground-mounted PV tenders also encountered similar oversubscription.

In the end, in the tender held on December 1, 2024, the German Federal Network Agency approved a total of 242 bids and signed a total of 2,150MW of PV capacity.

"The tendered capacity in this round of ground-mounted photovoltaic tenders was once again significantly higher than the tendered capacity. The continued high level of competition has led to a further decline in the winning bids, which has reduced the public funds available for new projects," said Klaus Müller, President of the Federal Network Agency.

In Germany's latest solar project tender, Bavaria ultimately received the most photovoltaic power capacity, with 120 projects totaling 916MW, which is consistent with the results of previous tenders. Schleswig-Holstein closely behind, with 231MW of photovoltaic power capacity and a total of 21 projects. Lower Saxony ranked third with 192MW of power capacity and 18 winning projects.

Since the adoption of the "Solar Package" last year, this is the first time that the rules for meeting minimum natural environmental protection standards have been implemented in the tender, which aims to improve the compatibility of ground-mounted photovoltaic projects with nature and landscape.

On the other hand, in this tender, the measures to increase the maximum capacity of projects to 50MW and the "solar special project" were not applied.

The next ground-mounted photovoltaic tender will end on March 1, 2025.

Photovoltaic power will take more responsibility for the entire system

In other related news, the German government recently adopted several important energy policies.

One of the policies stipulates that photovoltaic power will take more responsibility for the entire power generation system. The draft law aims to take measures to address the growing challenge of temporary overgeneration as more renewable power capacity is put into operation.

The changes introduced will better integrate power peaks in the grid and strengthen photovoltaic systems while improving network security. The operation of energy storage systems will also be simplified.

In addition, the changes are aimed at better handling of negative electricity prices, the controllability of renewable power plants and the controllability of network operators.

Robert Habeck, Federal Minister for Economic Affairs and Climate Protection, said: "The decision taken by the Bundestag today is very important for the energy transition and the better integration of renewable energy into the grid. The time for renewable energy has arrived. This package ensures important achievements in the field of renewable energy during this legislative period. We would have liked to have achieved more results and there was more to fight for."

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