Price of community wind energy at its lowest ever – No.1 G20 series

Last month the German Federal Network Agency (FNA) auctioned around 800 MW of wind energy installations. It was the first tender after years of subsidies.

The outcome was positive: The Feed-in-tariff will be around 5,78 cents per kilowatt hour. For comparison, this pricing is about 20 % lower than the present subsidized Feed-In-Tariff. This shows the significant cost reduction achieved by renewable energies in the past few years.

FNA received more than 256 offers totaling 2.137 megawatt and 70 offers were accepted. It means that 807 megawatts are going to be installed and produce wind energy at a significantly lower price than today’s. For 2017 three tender rounds are planned, the next will start on first of August. Applicants which did not win the first tender, will apply in the next round with even more aggressive pricing. Experts of the think-tank “Agora Energiewende” in Berlin expect the cost of energy to go down to 4,5 or even 3 cents per kilowatt hour in optimal locations. This will bring the cost of wind energy close to “grid parity” already in 2017. It means that the unsubsidized price of wind energy would be equal or lower to conventional energy sources.

The other good news is that 93 percent of the winning projects are related to private or citizens’ initiatives. The government created the conditions to raise public acceptance for the energy transition. This is a first step to give communities the chance to invest in local energy projects and pay less for their own energy.

It is a victory for the energy transition. A variety of actors are approaching the energy industry to bring clean energy to all of us at accessible prices. Common people want to participate into affordable and sustainable energy generation.

One of Mr. Trump’s arguments against the energy transition is the supposed high cost per kWh of renewable energies. This first tender in Germany shows a trend which is opposite to Mr. Trumps argument. In fact, unsubsidized renewables are going to be competitive with traditional energy sources very soon.

This story is the first of our series “Make our planet great again”. We intend to show Mr. Trump that the Paris agreement and the energy transition go far beyond idealism. We will publish a success story per week until the G20 in Hamburg in July

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