Beginning of the end of the statutory payment for free-standing PV installations
> February 2015

On 28th January 2015, the German cabinet adopted the Ordinance on the Introduction of Tendering Procedures for Financial Support for Free-Standing Photovoltaic Installations (FFAV).  This ordinance took effect on 11th February 2015 with the publication of the German Federal Gazette. This indicates the beginning of the end of the current statutory payment scheme. The last EEG amendment adopted has already established the pilot tendering procedure for free-standing photovoltaic installations. The new ordinance puts the determination of the amount of the subsidy by means of a tendering procedure into practice.

The German Federal Network Agency is the competent authority for the execution of the tendering procedure. It has to be expected that the first bidding round will be announced in February 2015, which means that the first deadline for the submission of bids will expire on 15th April 2015.

Three rounds of bidding to be held in April, August and December are scheduled with regard to the years 2015, 2016 and 2017. With the exception of April 2015, the tenders will be submitted as of the first day of these months. In 2015, a total of 500 MW are to be tendered, in 2016 400 MW and in 2017 300 MW are to be tendered.  If the MW volumes tendered for one deadline for the submission of bids are not reached, the subsequent invitations to tender will be adjusted accordingly.  

Invitations to tender must comprise, at least, 100 KW and, at a maximum, 10 MW. The maximum value of the invitation to tender is the value to be assumed which is provided for in the EEG and valid at the time of the announcement of the respective invitation to tender. The definition of a “plant” has been tightened. All generators which were commissioned within the same municipality within a period of 24 months and no more than 4 km from each other are defined as free-standing installations.  

By 30th June 2016, at the latest, the German federal government is to report to the German parliament about the experience gathered with the tendering model and submit a progress report.  This report should contain recommended courses of action for the determination of financial support and the amount of such through tendering procedures also regarding other technologies.  In this context, it is to be expected that the tendering model will then be extended to other photovoltaic systems and to wind power plants. It has already been announced that  the amount of subsidy for wind power plants will be determined by means of tendering procedures from the year 2017 on.

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