The first auction for cogeneration plants in Germany has awarded 82 MW at an average price of 4.05 cents. Five tenders were accepted for plants with a capacity of between 1 and 10 MW each -three of them modernized- and two tenders for plants with a capacity of approximately 30 MW each.
“The first auction for cogeneration plants in Germany has been a success, the high level of competition has allowed us to accept an average offer of 4.05 cents. The auction supports the profitability of payments for cogeneration plants,” said Jochen Homann, President of the Bundesnetzagentur.
There were 20 offers totaling a volume of 225 MW but only 82 MW were awarded despite the fact that the auction volume was 100 MW, since should the next offer had been accepted, the limit amount would have been exceeded. The volume not awarded this time will be auctioned in the next round.
The weighted average price per volume of the winning bids is 4.05 cents per kilowatt-hour (ct / kWh). The lowest offer was 3.19 ct / kWh and the highest accepted price was 4.99 ct / kWh.
The winning offers cannot be directly compared to the previous additional payment levels established by law, because in the context of the auction there is no longer the option of self-sufficiency or of harnessing the avoided network charges, the Bundesnetzagentur explains in a press release.
Cogeneration plants in Germany
This organism notes that the capacity of installation of the proposals accepted shows that competition is possible even between offers for CHP plants of different sizes. Indeed, five smaller tenders were accepted (for plants with capacity between 1 and 10 MW each) and two larger tenders (for plants with a capacity of approximately 30 MW each).
They also draw attention to the competition that has occurred between offers of modernized CHP plants and new plants: sixteen offers were presented for new plants and four for modernized ones. In addition, three of the smallest accepted offers are for modernized plants.
“The quality of the offers in the first round of auctions was unusually high, and none of the offers had to be disqualified, which shows that the participants understood the procedure and that it was possible to comply with the tender requirements,” the Bundesnetzagentur said. .