IZES: Auctions Result in Higher PV Prices in France than FITs in Germany

By Paul Gipe

Craig Morris at Renewables International has pointed out a startling chart in IZES (Institut für ZukunftsEnergieSysteme) report comparing auction systems to feed-in tariffs in Germnay. (Auctions are also called bidding systems, requests for proposals, and tenders.)

Morris explains that the chart shows German feed-in tariffs have resulted in a lower price for PV-generated electricity in Germany than the French bidding system has for solar energy in France. The erstwhile purpose of the French tendering program was to lower the cost of solar-electricity

IZES, says Morris, found that the price of of PV in Germany was €0.14/kWh and in France €0.17/kWh at the end of the period. This is a clear refutation of the main argument for auctions that they lower prices relative to feed-in tariffs.

According to the report, what auctions do do well is limit who can build and own renewable energy and limit how much gets built and when it gets built.

Actual outcomes of auctions in France, Brazil, and the Netherlands by Craig Morris.

Bewertung von Ausschreibungsverfahren als Finanzierungsmodell für Anlagen erneuerbarer Energienutzung by IZES.