Pixie Chart of the week | Germany demonstrates benefit of auction system

Germany regularly runs auctions to subsidise renewable generation capacity. In 2020, it plans to run 20 auctions – seven solar, seven onshore wind, three biomass and three mixed wind and solar – as well as six for CHP engines, seeking nearly 7GW of capacity in total. The auctions set a CfD-style price for energy exports from the generators, for a period of 20 years.

In this Chart of the week, we focus on historic prices in the onshore wind and solar auctions. These clearly illustrate the benefits and drawbacks of an auction.

To keep reading, please log in to your account

Alternatively, please sign up to receive free market insight online and direct to your inbox

Related thinking

Home supply and services

Green certificate prices continue to rise amid BEIS proposals

On 16 August, BEIS opened the consultation ‘Designing a framework for transparency of carbon content in energy products’. This call for evidence invites views on whether the use of Renewable Energy Guarantees of Origin (REGO) certificates for annualised renewable energy matching inhibits transparency for consumers, and how the REGO framework could...

Business supply and services

SME’s interest in renewables driven by corporates

Despite the challenging year for businesses, we recorded growing interest in renewable electricity amongst businesses and Third Party Intermediaries (TPIs) according to our TPI Satisfaction Survey for 2020. This has been a focus for Industrial and Commercial's (I&Cs) over the last two years driven by corporate social responsibility goals, particularly...

Low carbon generation

Australian Chart of the week | 3 2 1… fight: VRE and price cannibalisation in NEM

In the last decade, the rapid decline in deployment cost of variable renewable energy (VRE) generation capacity has given renewables an advantage over fossil fuels for new builds as highlighted in ‘Renewable Power Generation Costs in 2020’ report from the International Renewable Energy Agency (IRENA). In the report, Australia has...

Low carbon generation

Australian Chart of the week | VRE pays more as PFR helps reduce coal FCAS costs

In our previous ‘Chart of the week’ in November 2020, we reviewed the increasing percentage of causer pays cost that solar generators bear due to their generation profiles and how this results in them paying significantly more of the causer pays cost as a ratio of the generation they provide. More than...

Commercial and market outlook

Australian Chart of the week | Two roller coaster rides for the price of one? Preliminary vs final MLFs

In recent years, movements in marginal loss factors (MLFs) have received significant attention in the National Electricity Market (NEM). Many renewable projects in remote areas have experienced material MLF reductions as more supply connects nearby. For example, the MLF for Broken Hill Solar Farm saw a whopping 50 ppt drop...

Low carbon generation

Price trends for Renewables Gas Guarantees of Origins

In May 2021 we published the findings from our latest quarterly Green Certificates Survey. The survey is designed to provide greater market transparency for Renewable Energy Guarantees of Origin (REGO), Continental Guarantees of Origin (GoOs) and Renewable Gas Guarantees of Origin (RGGO) certificate markets. It provides aggregated views on certificate...

Low carbon generation

Australian Chart of the week | A view of captured prices by technology in New South Wales

This Chart of the week examines the historical captured prices of selected technologies within NSW for the last 10 years. Figure 1 shows the historical rolling monthly average of captured prices of various technologies within New South Wales against the monthly generation of variable renewable resources including small scale rooftop....

Commercial and market outlook

Chart of the week | Green recovery in Italy?

Issue 229 of ‘Chart of the week’ showcases Italian prime minister Mario Draghi’s economic recovery plan which was presented to the country’s parliament. The appointment of Mario Draghi, former head of the European Central Bank, as prime minister on 13 February has provided the country with a unique opportunity to...