Facing the challenge of energy shortage, Germany has once again increased its support for photovoltaic.
In order to boost the sluggish growth rate of the German solar field, it will hold additional tenders for 1.5GW of solar energy development, and participants can submit project development proposals by January 15 next year, the Federal Network Agency said.
According to the announcement, the size of the proposed project should not exceed 100MW. Proposed solar projects that win government incentives must be completed within nine months after the feed-in tariffs are awarded.
The upcoming tender is also known as the "crisis tender" because it was held in response to a widespread energy crisis in Germany caused by the conflict in Russia and Ukraine.
In April 2022, Germany released the "Easter Package", which will increase the share of renewable energy in the energy mix to 80% in 2030 and 100% in 2035.
The newly elected German coalition government is committed to accelerating the de-
carbonization of Germany's power sector while reducing energy imports. In the next decade, Germany will accelerate photovoltaic development, with the goal of reaching 215 GW of installed solar capacity by 2030, with an annual increase of 22 GW.
For Chinese photovoltaic companies, most mainstream photovoltaic companies are actively exploring the European market, and Germany's installed solar capacity has exceeded one third of the EU's. Germany's active policies will undoubtedly benefit the further growth of the country's photovoltaic market.
Among the first-tier module factories, Jinkosolar's European market revenue will account for 19% in 2021, and will increase to 27% in the first half of this year. Trina Solar and LONGi Green Energy will account for 20.48% and 14.06% of their European sales in 2021, respectively.
Challenges of under-subscription of projects
Despite the power push, the German government's new tender has also drawn some criticism. The German solar association 'BSW-Solar' said the time frame offered by German institutions for completing construction of solar projects was too short and unrealistic. He also said there were some land restrictions that would not allow solar projects to be completed in time and that those restrictions needed to be eased.
The German Solar Energy Association said that many German federal states have not yet opened up arable land and grasslands in impoverished regions of Germany, which hinders the development of solar power projects. Therefore, the potential development site for developers' solar power plants is limited.
The Federal Network Agency was unsuccessful in allocating all planned capacity mentioned in previous solar tenders. In the last tender allocation, the Federal Network Agency was only able to allocate 700MW of the 1,126MW planned at the beginning of this year.
Wind power tenders have also been under-subscribed over the past few years. Only the planned capacity of the past few months has been fully auctioned. Solar power tenders are mainly overbid. The under-subscription of solar tenders came into focus last month, raising questions about investor interest.
Carsten Körnig, head of BSW, said the current "site restrictions" would lead to a slowdown in solar expansion due to tight state-level restrictions on land allocation for solar power plant construction.
He also added that the current framework "is outdated and is curbing the expansion of solar, and the lights may go out in Germany." He believes that current tender conditions should be studied, otherwise, "future solar tenders may be frequently undersubscribed .".
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