Results of third coal phase-out tendering process
Year of issue 2021
Date of issue 2021.07.14
The Bundesnetzagentur has today announced the successful bids in the third tendering process in accordance with the Act to Reduce and End Coal-Fired Power Generation (KVBG).
"The coal phase-out is making steady progress,"
said Jochen Homann, Bundesnetzagentur President, "There was strong interest again in this third round of tendering."
Still strong interest in tendering process
The volume put out to tender of 2,480.826 megawatts (MW) was slightly undersubscribed despite the keen interest. Eleven bids with a total volume of 2,132.682 MW were submitted and so all the bidders could be awarded a tender. The largest volume granted a tender is 717 MW and the smallest 8.4 MW.
No bids had to be excluded from the process.
The prices of the bids awarded a tender range from €0 per MW to €155,000 per MW, with each successful bidder being paid the individual price that they bid. This is the first time that the plants bidding the highest prices have also been granted a tender. The volume-weighted average price of the bids awarded a tender was €102,798.81 per MW.
Phase-out plan still more than on track
By 31 December 2022 the capacity of hard coal-fired and small lignite-fired power plants generating electricity in Germany is to be reduced to no more than 15,000 MW. This target will still be met despite the fact that this round of tendering was undersubscribed. One reason is that plants are being closed or converted to other fuels that are not covered by the processes under the KVBG and can no longer be taken into account when determining the volume put out to tender.
Further steps in the process
Details of the tenders awarded (in German) have been published on the Bundesnetzagentur website at www.bnetza.de/kohleausschreibung21-2.
A map is available showing where the plants awarded a tender are located. Maps (in German) can be viewed at www.bnetza.de/kohlekarte-uebersicht and www.bnetza.de/kohlekarte-ausschreibung.
The plants that have been awarded a tender may no longer burn coal as from 31 October 2022. The transmission system operators (TSOs) will examine whether these plants are important for the transmission system. If necessary, they will submit relevant requests to the Bundesnetzagentur. If the Bundesnetzagentur grants a TSO's request to designate a plant as important for the system, the plant will be available for the grid reserve. The plant will then no longer be able to sell electricity on the electricity market, but it will still be available in critical situations to safeguard the electricity grid.
The volume not awarded in this undersubscribed round will be taken into account when determining the volume to be put out to tender in the next phase.
The next tendering date is 1 October 2021. The relevant information will be published on the Bundesnetzagentur website shortly.