Oversubscription at German wind tender may indicate change of direction

Oversubscription at German wind tender may indicate change of direction

After a series of flops, the latest German onshore wind tender was oversubscribed, which may indicate a change of direction in what used to be Europe’s largest wind market.

Germany’s federal grids agency (BNetzA) received 686MW in bids for 500MW on offer, following a streak of undersubscribed tenders for wind on land this year.

The agency ended up awarding 56 bids with a combined volume of 509MW that won with an average bid of €61.11 per megawatt hour. That was down from €62/MWh at the last onshore wind auction, and the first time this year the price edged slightly lower again.

The BNetzA nevertheless was cautious and said it was too early to tell whether the latest tender really meant a change of direction for onshore wind energy in Germany.

Previous tendering rounds this year had failed to attract bidders amid a permitting malaise that bodes badly for the future of the already troubled wind industry in the country. At the same time, new installations have already reached their lowest level since 2000, with only 287MW added during the first half of this year.