Germany’s Federal Network Agency has concluded its first auction of the year allocating 1.9GW of solar photovoltaic (PV) capacity.

The tender for utility-scale solar saw average prices of between $0.058 (€0.0529)/kWh to $0.077 (€0.0730)/kWh.

The capacity was assigned across a total of 245 bids. The auction was oversubscribed, with 347 project proposals totalling 2.9GW competing for capacity.

The total allocated capacity exceeds the 1.9GW capacity that the network agency had previously planned to allocate.

Bavaria, a southern state of Germany, was allocated the largest proportion with 845MW, followed by Brandenburg with 223MW and Rhineland-Palatinate with 163MW.

Klaus Müller, the president of the Federal Network Agency said: “For the first time since June 2022, the amount of bids received has significantly exceeded the amount of planned capacity […] It is now a matter of maintaining this high level of bids in order to push ahead with the necessary expansion in the long term.”

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During the previous large scale PV solar tender the agency allocated 609MW of capacity.

Solar PV adoption rose by 28% in Germany in 2022 with 7.2GW of new installations, according to Clean Energy Wire. In 2021, Germany added more than 5GW of solar power capacity, 10% more than in 2020.

However, this fails to meet government targets of 215GW by 2030, which would require the addition of 22GW of capacity per year.

The German government recently announced plans to buy shares in wind and solar companies in order to encourage adoption, in a so-called “transformation fund”

“We need to strengthen the production capacities for renewable energies and electricity grids in Germany and Europe,” said Robert Habeck, the country’s minister of economy and climate action, during a speech in February.

The government is also conducting research into the PV panel supply chain to source more materials domestically.