February 10, 2025 |
In Germany’s latest solar photovoltaics (PV) support auction, bids more than doubled the total capacity on offer, according to the Federal Network Agency (BNetzA). A total of nearly five gigawatts (GW) of projects were submitted, but only 242 projects, amounting to 2.15 GW, were selected for support. BNetzA President Klaus Müller noted the high competition level indicates a continued decline in the need for subsidies for new ground-mounted solar systems. The average bid value was 4.76 cents per kilowatt-hour (kWh), roughly 6% lower than the previous auction's price of 5.05 ct/kWh. This marks the lowest bid value since 2019. Germany has been using competitive auctions for years to drive down the costs of renewable electricity and encourage the development of technologies like wind and solar power. This approach rewards projects with the lowest subsidy requirements. As part of its strategy to decarbonize its energy sector, Germany has made solar PV a central focus. At the start of 2025, the country’s installed solar capacity surpassed 100 GW, and the government is aiming to more than double this figure to 215 GW by 2030. |
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