Danish bidders win cross-border PV tender

30.11.2016
Danish project developers will be supplying solar power to Germany at 5.38 cents/kWh. (Photo: iStock)
Danish project developers will be supplying solar power to Germany at 5.38 cents/kWh. (Photo: iStock)

In the first cross-border tender for ground-mounted PV plants in Germany and Denmark, Danish projects were awarded contracts for the entire expansion volume of 50 MW. The auction price was 5.38 cents/kWh.

The German Federal Network Agency was able to announce an auction price for the five successful projects that is almost 2 cents lower than the average price in the last national tender round (7.25 cents). Unlike Germany, Denmark allows agricultural land to be used for PV projects, and this is also the case with the installations that the successful Danish bidders are planning. Agricultural areas are considered much easier to develop than conversion areas, which the German Renewable Energies Act (EEG) confines project developers in Germany to.

In a statement, the Federal Network Agency said that it is not possible to harmonise all location conditions in an open tendering process. The German Renewable Energy Association (BEE), on the other hand, spoke of distorted competition in its own statement. Not only is land more easily accessible in Denmark, better tax conditions also give the Danish projects an advantage.

The open tender with Denmark, which was the first cross-border tender for renewable energy in Europe, was a pilot project. Its results and the subsequent implementation of the projects will be under considerable scrutiny. The European Commission intends to increase the percentage of the total volume that is open to neighbouring countries from the initial 5% to 15%. For critics, this first tender round is an opportunity to demand a level playing field for all participants in different countries. In particular, they are demanding the re-authorisation of agricultural land in Germany.

The German/Danish PV tender received 43 bids. According to the Federal Network Agency, there were 17 planned projects in Denmark and 26 in Germany with a total capacity of 297 MW. This is almost five times the awarded 50 MW, which are now being shared by five Danish projects.

Ralf Ossenbrink

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