Germany moves to negative bidding round in 2.5GW offshore wind tender
Federal grids agency to start uncapped 'dynamic bidding process' on June 17 after several zero-cent bids came in for two far-offshore North Sea sites
Interested parties starting on June 17 can offer uncapped amounts of money to pay for the right to build and operate the N-11.2 and N-12.3 sites, the country’s federal grids agency (BNetzA) said Friday.
The so-called ‘dynamic bidding process’ will have up to 13 rounds per day with bidding levels of €30,000 ($32,254)/MW each – or €45m for the 1.5GW site and €30m for the 1GW site.
“It is gratifying that companies do not need funding to expand offshore wind energy. The zero-cent bids make it clear that offshore wind energy is economically attractive," BNetzA president Klaus Müller said.
"Consumers will be relieved of the costs of offshore connection lines."
Uncapped negative bidding has been much criticised by the wind industry as it is likely to make building offshore wind farms more expensive, which will either be a drag on company finances or push up power prices for consumers.
The BNetzA, however, argues that the receipts of the negative bidding process will go primarily into lowering electricity costs.
It is unclear how long the ‘dynamic bidding process’ will last.