Germany Awards 490MW of Solar-Plus-Storage Capacity in Latest Auction, โคPrices โContinue to Fall
Berlin, Germany – Germany’s โFederal โขNetwork Agency (Bundesnetzagentur) has awarded 490MW of capacity to solar-plus-storage projects in โits latest innovationโข auction, demonstrating continued cost declines and strong market demand for โฃcombined renewable energy โคand storage solutions. The auction results, announced today, reveal successful bids ranging from 4.79 cents/kWh to โฃ5.59 cents/kWh, with a volume-weighted average price of 5.31 cents/kWh.
This latest round marks a critically importantโ drop from previousโฃ auctions, with the average price “considerably โlower” than the 6.15 โcents/kWh achieved in the July 2024 auction,โฃ which โฃwas โalready โfour times oversubscribed. Priorโ to that, the October 2024 roundโข settled at 7.45 cents/kWh, โand July’sโ auctionโค at โฃ6.15 cents/kWh,illustrating a consistent downwardโ trendโ in pricing. The cumulative capacity bidโฃ also โreached โฃa new high, exceeding โคthe 2GW markโ set inโค the July auction.
Bavaria secured the largest share of awarded capacity with 122MW across 11 projects,followed by Schleswig-Holstein and brandenburg,each receiving approximately 50MW. โNotably, all successful bids were for solar-plus-storage projects, highlighting โคtheir increasing competitiveness.
“The falling prices, fierce competition and highโข demand โคspeak to the economics โคof renewable energyโฃ in Germany,” reflects the current market dynamics. Industry experts, including Brentโค Wanner, head of the World Energy Outlooks’ power sectorโฃ unit at the International โEnergy Agency (IEA), โhaveโ noted that solar-plus-storage is becoming “increasingly cost-competitive” in major markets globally. Though,โฃ Wanner also emphasized the need forโฃ market adaptation โขto better accommodate โฃthese co-located assets.
The declining costs are drivenโ by โfalling prices for โฃboth solar equipment and battery technology. The IEA’s Renewablesโ 2025 report forecasts that PVโข will account for around 80% of global โrenewables expansion over โthe next five years,largely due to its โคaffordability and ease of deployment.
The โฃresults โcome as the German solar trade association,Bundesverband Solarwirtschaft (BSW-solar),this week called on the government to establish aโ legally bindingโฃ target of 100GWh ofโฃ energy storage โcapacity by 2030,signaling the โindustry’s ambition for continued growth in this sector.