Tender for 1.5 GW New Solar Projects Soon in Germany

Sep 19, 2022 01:27 PM ET
  • Players can submit their proposals for the growth of their projects by January 15 following year.
  • According to the news, the size of the proposed projects need to not be more than 100 MW.

In a quote to include rate to the tired development of the solar power sector in the nation, the Federal Network Agency (Bundesnetzagentur) of Germany has claimed that it will think of an additional tender for the development of 1.5 GW of solar energy capacity.

The Federal Network Agency specified that the players can submit their proposals for the advancement of their projects by January 15 next year.

As per the statement, the size of the suggested projects need to not be greater than 100 MW. The recommended solar projects that win honors from the government will certainly have to complete the projects within 9 months. This seeks they have actually safeguarded feed-in premium tariffs.

The upcoming tender has actually additionally been labelled as a 'crisis tender' because it is in reaction to the prevailing power crisis in Germany owing to the Russia-Ukraine conflict.

Surrounding Criticism

The German Government's move for the new tender has likewise gotten some criticism for it. The German Solar Association or 'BSW-Solar' has actually claimed that the time limitation supplied by the German Agency for the full building of the solar projects is also short and also impractical. It likewise claimed that there are land restrictions that forbid timely completion of solar projects as well as the land restrictions require to be relaxed.

The Obstacle of Undersubscription

The association stated that numerous government states in Germany are yet to open areas in arable lands as well as grasslands that remain in disadvantaged parts of Germany, which impedes solar power development. For this reason, developers have limited sites for prospective development of solar farms.

The Federal Network Agency has actually not succeeded in alloting all of the intended capacity mentioned in previous solar tenders. In the last tendering allowance, the agency might assign a mere 700 MW out of the planned 1,126 MW earlier this year.

In 2021, Germany included a mere 5.3 GW of solar power. In April 2022, the 'Easter Package' was launched to raise the share of renewables in the energy mix to 80 percent by 2030 as well as 100 percent by 2035. The government intends to set up 200 GW of solar power by the end of this decade.

Adding to the mounting problem is that the wind power auctions have additionally been undersubscribed over the last couple of years. Just prepared volumes in the last few months were totally auctioned off. Solar power auctions have actually likewise been primarily been oversubscribed. Last month, an undersubscribed solar tender ended up being a source of concern and raised questions regarding financier passion.

Carsten Körnig, head of the German Solar Industry Association (BSW), claimed that the present "place corset," as a result of the tight restrictions at state degree for allocating land for the objective of solar energy plant building and construction, would certainly lead to a stagnation in solar expansions. He also added that the present framework "is out of day and is curbing the expansion of solar power, while the lights might head out in Germany." He claimed that the existing tender problems should be considered or the, "future solar tenders are most likely to be undersubscribed routinely."

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