German capacity auction winners announced

The German Federal Network Agency (Bundesnetzagentur) has announced the winners of the second German offshore wind capacity auction. Six participants where awarded connection capacity for their projects, three in each the North and Baltic Sea.

The successful applicants were
Baltic Eagle GmbH, Gode Wind 04 GmbH, Iberdrola Renovables Deutschland GmbH, Innogy Kaskasi GmbH, KNK Wind GmbH, and the subsidy free Borkum Riffgrund West I GmbH.

The highest bid submitted sought for a subsidy value of EUR 98.3/MWh. The average additional value was EUR 46.6/MWh, above 2017's tender for which the average value was EUR 4.4/MWh. This was attributed to fewer bids being submitted in round two and only existing projects that had not been awarded in the first call could participate.

"The average mark-up is above the value of the first tender, which reflects the changed competitive situation compared to the first tender, but bids of 0 cents will be awarded this round,"
says Jochen Homann , President of the Federal Network Agency. "Another pleasing result of the second call for tenders is that almost all the spare capacity on several dedicated interconnection lines is being used, which avoids unnecessary vacancy costs."

Commenting on the successful bid, Martin Neubert, Executive Vice President and CEO of Wind Power at Ørsted, said: “We’re very pleased with winning these new projects which add significant capacity to our existing German portfolio and will be value creating to our investors. This is another important step towards achieving our ambition of 11-12GW installed offshore wind capacity world-wide by 2025.”

In 2017's German offshore wind auction Ørsted was named as one of the winners with three successful bids,  
Borkum Riffgrund West 2 (240MW), Gode Wind 3 (110MW) and  OWP West (240MW). For two of the projects – OWP West and Borkum Riffgrund West 2–  Ørsted made subsidy free bids with Gode Wind 3 securing a price of EUR 60/MWh.

Today's announcement brings Ørsted’s projects in Cluster 1 up to 900MW capacity. Ørsted’s Gode Wind projects will have a total capacity of 241.75MW at a weighted average price of EUR 81/MWh. In total, this means that Ørsted will build 1,141.75MW new offshore wind capacity in Germany by 2024/2025, subject to Ørsted taking Final Investment Decisions.

The offshore construction schedule for all projects will be dependant on the connection availability, which in turn will depend on progress and allocation constraints of the grid expansion.

For more information please follow the links provided. Alternatively you can
click here for more information about the German offshore wind market.

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