Meager interest for German biomass power tender
On March 1, 2021, the German Federal Network Agency (Bundesnetzagentur) tendered for 168 MW of biomass power capacity. A total of sixty bids were received but as these amounted to far less than the amount tendered, the Federal Network Agency had to reduce the award volume by 80 percent.
According to a statement, a total of sixty bids with a capacity volume of just under 44 MW were submitted. In this tender round, the newly introduced quantity control for biomass plants took effect for the first time.
For this purpose, the bids for new and existing systems were first separated in the procedure (7 bids for new systems with 14 MW and 53 bids for existing systems with 29 MW) and checked for their admissibility. Eight bids had to be excluded due to formal errors.
A total of 38 bids with a volume of 34 MW – 20 percent of the original tender volume – were successful, including five new plants. The bid values of the accepted bids are between EUR 0.12/kWh and EUR 0.1829/kWh. The average, volume-weighted award value is EUR 0.1702/kWh and has increased significantly compared to the previous round.
Since the bids received for new and existing systems amounted to less than the amount tendered, the Federal Network Agency had to reduce the award volume by 80 percent – 34 MW instead of 168 MW.