Challenges in the permitting procedure mean the latest German onshore wind auction has come in under-subscribed. The prices – average €62.6/MWh - were also up on the €57/MWh in the last auction in May. Only 363 MW of capacity won a contract, compared to the 670 MW that was on offer.
Over 900 MW of projects were pre-approved for the auction and had a permit. But only a third of these actually bid. The problem was many of them face legal challenges to their permit and wanted to avoid being exposed to penalties for non-delivery. WindEurope CEO Giles Dickson said: “The German Government were right to change their auction rules so that wind farms now need a permit before they can bid. But it’s got harder to get a permit. And even when you get one, you’re exposed to legal challenge because the regional siting plans are not robust enough. Germany needs to address this. Otherwise the auctions will continue to be under-subscribed like this last one. And the prices will be higher than they should be.
