Competition among developers in German solar auctions remains strong

Germany held the first of this year’s three auctions to support the construction of ground-mounted solar power plants in early March. Interest in the auction was as strong as in previous rounds, with the volume of submitted projects exceeding the auction volume by half. Awarded guaranteed prices fell slightly again, remaining below EUR 50/MWh.

Germany plans to hold three auctions this year to support ground-mounted solar power plants, offering a total of around 7 GW. Awarded prices have been falling in recent rounds. The rise in prices had already stalled in 2023, and in the final round last year the average fell back below EUR 50/MWh.

Developers submitted 420 projects with a total installed capacity of 3.8 GW for the March round, while the regulator offered 2.6 GW in the auction. The regulator had to exclude 35 bids, but competition was still strong and the auction was comfortably oversubscribed.

"The auctions continue to attract high participation, competition remains strong and awarded guaranteed prices are still falling. The regulator very much welcomes developments in the ground-mounted solar sector. All these systems are controllable and align their electricity supply with market demand," says Klaus Müller, president of Germany’s energy regulator.

Awarded guaranteed minimum prices ranged from EUR 39.9 to EUR 48.8/MWh. The weighted average price in the March round was EUR 46.6/MWh, one euro lower than in the previous round last December.

The regional distribution of successful projects has not changed significantly. Sunny Bavaria (607 MW) continues to dominate ground-mounted solar auctions, followed by the northern German states of Brandenburg (367 MW) and Lower Saxony (315 MW).