Legally defined civic energy again almost entirely dominates the second round of “Wind on Land” invitations to tender

Expansion of onshore wind energy in Germany in the first half of 2016As was expected, the second round of invitations to tender for “Wind on Land” is dominated by players who fulfil the civic energy requirements specified by the EEG, with 95% of the award-winning submissions. As a result, there is greater uncertainty as to whether the extension corridor can be achieved in the years after 2018, both in terms of time and with regard to volume. Suppliers and producers, as well as ancillary building trades, logistics providers and project planners, find themselves under strong pressure as a result of this insecurity.

Prices are decreasing and clearly reflect the strong competitive pressure. It will only be possible to assess in two years’ time at the earliest what the effect of this price pressure will be on actual realisation.

While during the 1st half of 2017, at least 45 percent of the extensions implemented were concentrated in the southern German federal states of North Rhine-Westphalia, Rhineland Palatinate, Saarland, Hesse, Baden-Wurttemberg, Bavaria and Saxony, these federal states fare worse in terms of the offers approved in this round, at just 12 percent. The precise reasons for this need to be examined. On the one hand, the tender volume is not sufficient, while on the other, the correction factors in the reference yield model appear to be incorrect.

In the second round, the eastern German federal states in particular have received funds. 63 percent of the volume went to the federal states of Mecklenburg-Western Pomerania, Brandenburg, Saxony, Saxony-Anhalt and Thuringia.

We see a risk of the expansion of wind energy being jeopardised through the development of the tender results in 2019 and 2020. The political arena should not risk endangering the top technological ranking of German companies on rapidly growing international markets as a result. At the same time, a low-level expansion undermines the climate protection goals.

Source: Bundesverband WindEnergie e.V., August 15, 2017
www.wind-energie.de

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