The price of onshore wind energy in Germany has fallen by 10% since the country’s last renewable auctions.
The Federal Network Agency, which is responsible for regulating the energy markets, says the average volume weighted price quoted in this year’s bids was €4.02 cents (£3.58p) per kilowatt hour (ct/kWh), lower than the highest price accepted in the last auction of €4.29ct/kWh (£3.82p).
The prices quoted in the successful bids ranged from €2.2ct/kWh (£1.96p) to €3.82ct/kWh (£3.4p) and averaged at €3.4ct/kWh (£3.03p).
According to the Federal Network Agency, these lower prices were driven by increased competitive pressure – the auction was significantly oversubscribed, with 210 bids totalling 2.6GW by far exceeding the 1,000MW on offer.
The third auction for onshore wind energy saw community energy companies and citizen-owned groups secure 98% of all successful bids, adding up to 99.2% of the total volume awarded.
A total of 61 bids were accepted, making up 1GW of wind generation capacity.
Jochen Homann, President of the Federal Network Agency, said: “Once again, there has been a significant decrease in the prices awarded, down a further 10% on the last auction.
“These bidders now have four and a half years to implement their projects and in our estimation based their bids on anticipated positive developments in plant technology and falling prices.”