08 Jul 2020 | 12:36 UTC — London

German solar, wind capture prices hit five-month high in June

Highlights

Onshore wind capture price just 1% lower on year at Eur22/MWh

Solar almost tripled from April low to Eur24.73/MWh

Average spot prices at highest since Jan on CO2 rally

London — Capture prices for German wind and solar operators recovered in June from record lows in April, official data compiled by grid operators showed July 8.

June's Eur22.03/MWh capture price for onshore wind (reflecting actual prices accrued during operation) was the highest since January and just 1% lower year on year after falling to Eur9.40/MWh in April.

Solar capture prices almost tripled from April, but at Eur24.73/MWh remained 15% lower year on year.

In April, the market value of solar power plunged 72% on the year as record solar generation combined with bearish spot prices due to the coronavirus outbreak.

German power prices are continuing to rebound, with June's spot average the highest since January, although 20% below June 2019.

Subdued wind and solar generation in June (down 1% on year at 12.9 TWh) helped lift overall power prices, supported by a rally in CO2 prices as well as a gradual recovery in demand from the coronavirus crisis.

German wind, solar capture prices (Eur/MWh)

Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Epex Spot average
35.03
21.92
22.49
17.09
17.6
26.18
49.39
42.82
30.63
36.96
37.84
32.52
Onshore Wind
30.91
16.8
17.73
9.4
12.14
22.03
38.83
38.11
24.23
32.65
35.64
22.31
Offshore Wind
33.21
19.2
18.1
11.28
12.47
21.96
42.98
40.88
26.72
34.16
35.59
26.62
Solar
38.31
23.19
16.18
8.9
14.13
24.73
59.06
42.13
30.75
31.72
34.3
29.1

Source: EEG Netztransparenz.de

H1 2020 wind and solar generation was up 19% at 103 TWh with renewables (including biomass and hydro) covering over 50% of German demand.

The surplus in Germany's renewable energy support account is set to shrink further due to lower wholesale prices and higher renewable output.

However, the government plans to cap the so-called EEG-Umlage (green power levy) at Eur65/MWh for 2021 and at Eur60/MWh for 2022 with some Eur11 billion from the federal budget.

Without the intervention, the levy was estimated to soar, raising electricity bills.