Now Germany Adopts New Model For its Renewable Energy Tenders

RUVNL's 1 GW Tender Sees Mahindra Susten, SAEL, Avaada Among Winners

Three further initiatives to support Germany’s pish for more renewable energy sources for electricity production have been given the green light by the European Commission by EU State Aid regulations. A change from a fixed to a sliding market premium (New Model) in the payout structure for tenders supporting innovation is one of the approaches. 

The intention is to prevent generators from being overcompensated during periods of high electricity costs. A market premium will be added to the market price for generators. Because the premium is fixed under the fixed market premium model, producers are overcompensated whether energy prices are rising or falling. The sliding market premium, on the other hand, is based on changing market prices and fills the difference between the cost of production and its market price.

To encourage more power to be supplied into the grid rather than being restricted to captive consumption, Germany will also give financial incentives for consumers to invest in small rooftop solar installations.

In 2022, the second round of rooftop and ground-mounted solar tenders will be released with a larger capacity. The two rounds of bids that were undersubscribed earlier this year prompted this. A meager response was given to the July round of auctions, with bids for only 714 MW against 1.126 GW tendered. As a novel measure, all offers may be accepted at the price put forth if the tender is undersubscribed.

“By providing specialized measures for various renewable energy sources, the three measures seek to reinforce Germany’s commitment to market-oriented procedures for promoting the production of green electricity. They should strengthen the German Renewable Energy Act and help further Germany’s environmental goals as well as the EU’s strategic goals for the EU Green Deal. The new regulations will help improve system stability and prevent producers from being overcompensated during periods of high electricity costs. These additional actions will assist the EU Green Deal goals and improve the goals of the Renewable Energy Act”, according to Executive Vice-President Margrethe Vestager, who is also the In-Charge of competition policy. 

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In Wunsiedel, Upper Franconia, Siemens just put into operation one of Germany’s biggest green hydrogen production facilities. The company claims that the Wunsiedel Energy Park can currently produce up to 1,350 tonnes of green hydrogen yearly using wind and solar energy. An electrolyzer from Siemens Energy’s newest and most potent product line, with a total capacity of 8.75 megawatts, produces hydrogen. 

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