German government announces date for the first cross-border renewable auction with Denmark

The German Ministry for Economic Affairs and Energy (BWMi) and the German regulator of Electricity, Gas, Telecommunications, Post and Railway (BNetzA) today published a joint press release to announce that the first cross-border auction with Denmark for free-field photovoltaic (PV) plants will be held on 15th November. In July, the German Parliament adopted the new Renewable Energy Act (EEG 2017) which governs the support for electricity from renewable sources. The announcement reflects the first time that financial support under the EEG will be available to bidders from outside Germany. Frontier (Europe) has been advising bidders in renewable auctions and other sectors across Europe.

The BNetzA also published the rules for the auction. A total volume of 50 MW will be procured from PV installations located in Denmark or Germany in a uniform price auction. The winning bids will only be determined by the level of the bid, not plant location.  The legal basis for this cross-border auction is a bilateral cooperation agreement between Germany and Denmark, signed in July. The cooperation agreement is reciprocal: Denmark is planning to open their national solar PV auction to bidders with sites in Germany at the end of this year. The mutual opening of German and Danish renewable auctions fulfils a requirement imposed by the European Commission in the State Aid Guidelines.

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