By Brian Parkin
The cost electricity from the next bunch of onshore wind farms in Germany fell by a quarter in a government auction for power purchase contracts run by the regulator Bnetza.
Bidders dominated by citizen groups won about 1 gigawatt of capacity at an average price of 4.28 euro cents per kilowatt-hour (5.03 U.S. cents/KWh), the Bonn-based agency said on Tuesday. That’s a reduction from the average of 5.71 cents/KWh from the first contest of its kind held in May and much lower than the average of 5.70 euro cents/KWh estimated by Bloomberg New Energy Finance for prevailing prices across the region.
The result confirms that the wind farms due to be built in the next decade are among the cheapest forms of electricity, rivaling fossil fuels including coal and natural gas.
Some 5.6 gigawatts of onshore power is being tendered in total this year and next, a larger volume than tenders for offshore capacity, solar, biomass or combined heat-power plants.