Germany Sets New Price Ceilings for 2025 Renewable Energy Auctions

Bundesnetzagentur, the German independent federal authority that regulates and oversees infrastructure markets recently set new determinations setting price ceilings for the renewable energy generation auctions to be held in 2025. The organization set the price ceilings of 6.80 cents per kilowatt hour (ct/kWh) for ground-mounted solar photovoltaic (PV) systems, 7.35 ct/kWh for onshore wind, 9.00 ct/kWh for installation combinations in innovation auctions, and 10.40 ct/kWh for roof-mounted solar PV systems.

“The new price ceilings create a reliable framework for the auctions and ensure that the renewable energy expansion targets can be met. At the same time, they help keep the costs of support down as low as possible,” said Klaus Müller, President of the Bundesnetzagentur.

Adjustment of the price ceilings

Bundesnetzagentur also sets the price ceiling for the onshore wind auctions for Germany, which is the same as that set for this year’s auctions. It was kept the same because the welcome upward trend in bid volumes has not yet led to a significant decrease in the award prices. In addition, the forecast levelised costs of electricity have remained stable compared with the year before.

The organization kept certain prices unchanged, for instance, it mentioned, “The price ceilings for 2025 for ground-mounted solar PV systems, roof-mounted solar PV systems, and the innovation auctions are slightly lower than this year’s price ceilings. The new price ceilings take into account the decrease in the forecast levelised costs of electricity, the results of the last three rounds in each type of auction, and the larger volumes that will be up for auction in 2025 for the two types of solar PV systems.”

Without the Bundesnetzagentur’s new price ceilings, the ceilings would revert to the considerably lower limits set in the Renewable Energy Sources Act (EEG). If this happened, there would be a risk that the volumes up for auction in 2025 would not be exhausted.