In total, solar PV, onshore wind (34GW, 24% of the total volume) and offshore wind (31GW, 23% of the total volume) accounted for about 91% of the allocated volume in 2023. The remaining 9% were hydro, biofuel, geothermal, solar thermal and tidal technologies.
“Onshore wind capacity awarded in tenders rebounded in 2023, but it was overshadowed by a drop in solar PV,” said Ana Fernandez Garcia, senior research analyst at Wood Mackenzie.
Tenders for solar PV, along with onshore wind, were undersubscribed last year. Wood Mackenzie said the lack of interested bidders led to 30% of the volume being tendered unallocated in 2023, but zero bidding also led to cancelling contracts later in the developing phase of the projects.
Looking ahead, over 100GW of global renewables capacity is expected to be tendered in 2024. Wood Mackenzie said more than 60GW will be offshore wind.
“Government tenders are a primary support scheme for renewable energy deployment across the world. Tenders have increased each year and the Europe, Middle East, and Africa region (EMEA) will hold more than 50% of expected tenders,” said Fernandez Garcia.
“Individual major markets, such as China, will continue to dominate. So far, Germany has announced renewable energy rounds for 25GW for this year,” she added.
For example, in January Germany announced a solar PV auction for ground-mounted capacity had ended three and half times oversubscribed with nearly 5.5GW of bidding capacity submitted. Out of the record 574 bids submitted, 124 were awarded for a total capacity of 1.6GW, with the average price set at €0.0517/kWh (US$0.062/kWh), 1.3 cents below the previous round.
