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German onshore wind additions plunge to 98 MW in November

Highlights

2.6 GW added so far this year, 47% below 2017

Switch to auctions will halt boom in 2019

Wind covered 19% of power demand in 2018

London — German onshore wind additions fell to just 98 MW in November with additions 47% below 2017 at 2.6 GW for the year to date, data from federal grid regulator BNetzA showed.

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Sluggish permitting rates and the switch to competitive auctions are behind the sharp slowdown in annual additions after almost 20 GW were added since reform of the EEG renewable energy law in 2014.

New project approvals have slowed to a trickle with just 1.1 GW approved in the first nine months of 2018 due to legal and administrative delays, a recent report by consultancy FA Wind said.

Approving some 10 GW stuck in the permitting process would be key to growth and successful auctions in 2019, lobby group BWE said.

Germany is set to offer 3,675 MW of onshore wind capacity across six auctions in 2019 starting in February. Maximum bids have been set at Eur62/MWh by BNetzA.

Meanwhile German wind power output is on track for another record year with annual output estimated to reach 110 TWh, TSO data aggregated by Fraunhofer ISE show.

The data include offshore wind (now over 6 GW) in the North and Baltic Sea, benefiting from higher load factors.

Wind is now Germany's second-biggest source of generation after lignite, covering 19% of national power demand in 2018, BDEW estimates show.

Onshore wind output also managed to achieve higher prices with the market value or capture price averaging Eur42.36/MWh for the first 11 months of 2018 compared to Eur33.29/MWh in 2017, TSO data show.

--Andreas Franke, andreas.franke@spglobal.com

--Edited by Alisdair Bowles, newsdesk@spglobal.com