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Cross-border solar: Denmark gets 50 MW of German tender with bids of 5.38 euro cents/kWh
The first cross-border solar tender in Europe sees five Danish solar developers with 50 MW of PV capacity in German auction. Winning bids of EUR 5.38 cents/kWh almost two cents lower than previous German solar tender.
The German Federal Network Agency has today revealed that 50 MW of its latest solar PV tender has been snapped up by Danish companies for construction of five solar projects in Denmark.
The auction results are the first time ever in Europe that a cross-border PV auction has been held, and sees Germany's northern neighbor of Denmark earn the right to develop these solar projects on agricultural land – something that is currently forbidden under Germany's Energiewende (EEG).
The five bids won with a surcharge tariff of 5.38 euro cents/kWh, which is two cents below the previous national tender held in Germany for open-air solar installations, which attracted winning bids of 7.25 euro cents/kWh in August.
Five bids from Danish companies to build solar farms in Denmark under the German PV tender were accepted, with a tariff of EUR 5.38 cents/kWh.
The tender procedure offered by the German agency limited the number of potential foreign locations, but nevertheless the terms of the tender stipulated that those bids that offered the most favorable conditions would be implemented. In being able to offer up arable land, Danish companies had somewhat of an upper hand in terms of bringing down the costs.
This cross-border tender is viewed with both Germany and Denmark as a vital pilot project to assess the viability and practicality of tendering projects between EU member states.
According to the German Federal Network Agency, 43 bids with a total volume of 297 MW were received. Of that total, 17 were from Denmark and amounted to 154 MW, with 26 German bids totaling 143 MW. Hence, the 50 MW volume was exceeded fivefold.
Unsuccessful bids from Germany are still permitted to take part in the sixth round of the PV tender, which runs until December 1. These potential projects could also be submitted under a Danish Tender, which has a deadline of December 8 for a total volume of 20 MW.
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SOURCEPV Magazine
Carlos Monteiro is a Brazilian citizen, graduated in Business Administration by the Catholic University of São Paulo. He lives in Odense, Denmark with his Danish Wife, Cathrine, and their half Danish /Brazilian daughter Ines Marie. You are very welcome to be in contact him at any time.
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