Power & Energy

Germany awarded a higher price in last auction for onshore wind power

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Frankfurt/Copenhagen: The wind power auction saw a higher price that elevated to 4.6 euro cents per domestic unit from the previous rate of 5.8 euro cents/kWh. This was the agreement decided in the last auction arranged in November 2017.

This year, the network regulator of Germany offered a higher price per domestic unit of energy to the onshore wind energy during the auction held in November last year. It clearly reflected new rules that will make it tough to compete for the citizens’ cooperatives.

The average price that was awarded by Bundesnetzagentur or BnetzA to the onshore projects of wind energy was set at 4.6 euro cents/kWh. It was 3.8 euro cents last year. The considerable increase in the price awarded by the giants will redirect most of the energy to its core rather than choosing the citizens’ cooperative.

The share of the companies making wind turbines increased after the news was published. Vestas, the world’s largest turbine manufacturer, has witnessed a hike of 3.8% in the value of its share immediately after the news was published in the market. Other players like Nordex and Siemens Gamesa witnessed a hike of 3.9% and 2.3% respectively.

Previously, the auctions from BnetzA have always favored the cooperatives rather than the giants but this year was an exception. The commercial players’ intervention in increasing the price of the energy units will impart a challenge for the cooperatives. BnetzA revealed that it has received a total of 83 bids for a volume of 709 MW production of wind power.

 

 

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