DNV GL’s work on onshore Wind Energy Auction awarded prize at prestigious POWER-GEN 2017 conference

Paper on first onshore wind auction in Germany at the POWER-GEN & Renewable Energy World Europe Conference 2017 was awarded a “highly commended” certificate by a panel of power industry jurors.

DNV GL’s Market & Regulations team located in Bonn, Germany proudly represented DNV GL Energy at the POWER-GEN & Renewable Energy World Europe Conference 2017 in Cologne, which took place from the 27th - 29th of June.

During the panel session titled “The Financial & Institutional Drivers for Renewable Development”, Juan Jose Diaz explained the results of DNV GL’s analysis of onshore wind markets and the effect on the German auction to an audience of experts from across Europe. The presentation led to a lively debate with other panelists, focusing on the future of renewable energy auction system in Europe and required reforms.

Under the leadership of Tim Mennel a team of economists and engineers developed a methodology for a quantitative analysis of the revenue and cost structure of onshore wind projects. These tools were used in advisory projects for onshore wind project developers and an equipment manufacturer prior to the first auction on May 1st, taking account of the regulatory ramifications.

In the closing event of the conference, the paper “Onshore Wind Auctions: Background and First Experiences from Germany “, submitted by Torsten Lubenow & Tim Mennel, was awarded the certificate in the category “Renewable Energy”. The awarded paper describes the framework, market background and first experiences with wind onshore auctions in Germany. 

About the Conference

Europe’s power sector is re-defining itself, aligning with the complexities of a digital age and opening up to strategic and technical opportunities. The POWER-GEN & Renewable Energy World Europe Conference 2017 has created a complete platform for power professionals to make sense of the energy transition. Attracting a worldwide audience, it is the industry’s premier event, resolved in discussing solutions for advancing Europe's energy future and to compare views on shared opportunities and challenges. Featuring the leading suppliers, sub-suppliers, service providers and end-users across the entire power generation value chain, the conference captures all the aspects of today’s centralized and distributed power generation sector. Together they combine strategic and technical presentations with the largest trade show exhibition of power equipment and services in Europe.

The POWER-GEN conference has proved to be the optimal setting to increase the visibility of the company in themes regarding renewable deployment in Europe. Auction processes for renewable deployment is becoming a widespread trend along Europe for economic and political reasons, representing a perfect setting for DNV GL to expand its methodology to other key markets.

Background and perspectives of Renewable Auctions in Germany and Europe

Auctions used as support instruments for large scale renewable installations replacing the once dominant feed-in tariffs are becoming increasingly popular among governments. Germany in particular has introduced changes to the renewable energy law (now labelled EEG 2017) permitting the implementation of tender processes for large scale renewable generation assets. Following this regulatory reform  the first on-shore wind energy auction (sealed bid, pay as bid auction) took place on May, 1st 2017 for a total capacity of 800 MW. This represents the starting point for more on-shore wind auctions to come, which according to official statements should total 2800 MW of capacity per annum until 2020 and 2900 MW from then on.

In parallel auctions for offshore wind, solar PV and other renewable sources will serve as a cornerstone to accomplish the ambitious renewable targets of Germany. Likewise, similar tender systems are being implemented in a number of EU countries, including Spain, France, Italy, Denmark and the Netherlands. This represents an optimal opportunity for DNV GL to expand its advisory portfolio and gain new clients.