RES-E Tender Mechanisms: Background and First Experiences from Germany
(Room Rheinsaal 5)
28 Jun 17
2:00 PM
-
3:30 PM
Tracks:
Track C - Renewable Energy
Support systems for large scale renewable installations, in particular wind, are due to change in many EU markets: the EU "Guidelines for state aid for environmental protection and energy 2014-2020“ stipulate the testing of market based tender systems, replacing the once dominant feed-in tariffs. Driving forces behind this change of regulatory paradigm are the goals of RES-E market integration and reduction of support cost. In Germany, changes to the renewable energy law (now labelled EEG 2017) have been passed by the Bundestag on July, 8, introducing a tender process for large scale renewable generation assets. In the on-shore wind energy, the first auction (sealed bid, pay as bid auction) will take place on May, 1st 2017. From then on, there will be three auctions per year, with a total volume of 2800 MW p.a. In parallel tender systems are being introduced for offshore wind, solar PV and other renewable sources in Germany. Similar tender systems are due or likely to be introduced in a number of EU countries, including France and the Netherlands. The paper / presentation will describe the framework, market background and first experiences with wind onshore auctions in Germany, as well as prior experiences in Italy and Denmark. DNV GL has accompanied wind project developers in the latter countries, and is currently advising developers and investors in their preparation for the upcoming tenders. To that aim, it has developed quantitative tools for a comprehensive cost and revenue assessment of wind projects. Both the methodology and a market analysis based on the application of tools will be presented.