Germany’s Federal Network Agency has launched the first 4.5 GW auction under the new StromVKG, with developers invited to bid for dispatchable generation and long-duration storage capacity despite pending EU state aid approval.
Germany’s Federal Network Agency (Bundesnetzagentur) has launched the first auction under Germany’s new Electricity Supply Security and Capacity Act (StromVKG). Companies have until Sept. 8 to submit bids for new dispatchable generation and long-duration energy storage capacity.
The first auction covers 4.5 GW of capacity. Successful bidders will receive capacity payments in exchange for keeping their facilities available for 15 years.
The auction is the first of six planned rounds. Two auctions of 4.5 GW each are scheduled for long-duration capacity, followed by an auction for more than 2 GW of generation capacity. Three additional auctions are planned from 2029 onward.
To support grid expansion, the auction includes a regional allocation mechanism. At least one-third of the auction volume will initially be awarded to projects in the “grid-technical north.” Projects in the “grid-technical south” will then be considered, with bids evaluated after applying a deduction of €16,000 ($18.274)/MW from the bid price.
