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German Onshore Wind Power Costs Plummet in Second Auction

  • Winning bids for August tender drop 25% from contest in May
  • Germany offering 2.8 GW in onshore power auctions per year
Wind turbines operate on a wind farm in Bedburg, Germany.
Photographer: Martin Leissl/Bloomberg

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.