Germany’s key regulatory body overseeing infrastructure and fostering market competition in energy, telecommunications, post, and railways, Bundesnetzagentur, has revealed the price ceilings for upcoming 2024 auctions. The announced ceilings are as follows: onshore wind at 7.35 cents per kilowatt-hour, ground-mounted solar photovoltaic (PV) systems at 7.37 cents/kWh, and rooftop solar installations at 10.50 cents/kWh.
President Klaus Müller emphasized the establishment of a dependable framework for the auctions, taking into consideration the actual costs associated with renewable energy. He also indicated the agency’s intention to set price ceilings for biomass, biomethane, and innovation auctions in the near future.
The price ceilings for onshore wind and ground-mounted solar PV auctions align with the higher limits set for the current year. However, the rooftop solar auction ceiling for 2024 has been slightly lowered due to reduced projected costs for rooftop installations and the absence of significant bids exceeding 10.50 cents/kWh in recent rounds.
Notably, without the updated price ceilings, the limits would default to lower values defined in the Renewable Energy Sources Act (EEG): 5.88 cents/kWh for onshore wind, 5.90 cents/kWh for ground-mounted solar PV systems, and 8.91 cents/kWh for rooftop solar installations, which are considered inadequate.
The Bundesnetzagentur’s adjustment of price ceilings responds to the rising costs associated with constructing and operating installations, including financing expenses. The increased costs have made it economically unviable to meet the necessary operational standards for new installations under the previously defined price ceilings in legislation, necessitating these revisions.
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