Germany regularly runs auctions to subsidise renewable generation capacity. In 2020, it plans to run 20 auctions – seven solar, seven onshore wind, three biomass and three mixed wind and solar – as well as six for CHP engines, seeking nearly 7GW of capacity in total. The auctions set a CfD-style price for energy exports from the generators, for a period of 20 years.
In this Chart of the week, we focus on historic prices in the onshore wind and solar auctions. These clearly illustrate the benefits and drawbacks of an auction.