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Economic efficiency of photovoltaic systems

Since 2017, 600 MW has been awarded annually through tenders for systems over 750 kW. For the years 2019 to 2021, a further 4 GW will be awarded through special tenders.

Economic viability of photovoltaic systems – Image: @shutterstock|petrmalinak

Electricity from open-space systems is subsidized via the Renewable Energy Act (EEG). The remuneration for this type of system was lower than for photovoltaic systems that are mounted on or on buildings.

In 2009 the remuneration was 31.94 cents per kilowatt hour (kWh) of electricity fed in; in 2010 it fell to 28.43 cents for new systems. As of January 2013 it was 11.78 cents, falling with discounts of 2.5% per month. The 2014 amendment to the EEG stipulated that the level of funding for open-space photovoltaic systems should in future be determined in tenders by the Federal Network Agency, instead of the previous feed-in tariffs determined by law. The implementation took place in the regulation on the tendering of financial support for open space systems of February 6, 2015 (Open Space Tender Ordinance). With the EEG 2017, these tenders are regulated by law. Smaller PV systems up to 750 kWp receive a legally determined remuneration without tendering.

The first bidding date was April 15, 2015 with an advertised quantity of 150 megawatts. The tender volume was several times oversubscribed. The Federal Association for Renewable Energy expressed the fear that citizens' cooperatives and systems could be pushed out of the market because, due to their lower capital strength, they have to make fewer advance payments and can bear fewer risks.

Tenders have been criticized because international experience and economic models suggest that the desired goals of cost efficiency, expansion goals and diversity of actors are thwarted. The pilot model for ground-mounted PV systems was intended to test the practical impact of tenders in the field of renewable energies.

Subsidy-free solar parks : Solar parks built without government subsidies are becoming increasingly common. These projects do not receive any additional market premium from the EEG surcharge. In 2018, the company Viessmann built a 2 MW solar park next to its headquarters in Allendorf (Eder), which is refinanced through on-site electricity consumption. In 2019, EnBW Energie Baden-Württemberg (EnBW) announced a series of large solar parks that are intended to be amortized solely through electricity sales on the market. Among them, the Weesow-Willmersdorf solar park, covering an area of ​​164 hectares, is slated to become Germany's largest solar park by 2020. The final investment decision for the 180 MW solar park was made in October 2019; EnBW states the costs are in the high tens of millions of euros. In Marlow, Energiekontor is planning to build an 80 MW solar park on an area of ​​120 hectares. The electricity generated there is purchased by EnBW via a long-term supply contract. At Barth Airport, BayWa r.e. renewable energy is building a subsidy-free 8.8 MW photovoltaic plant, utilizing the infrastructure of the existing solar park.

Similar projects exist for the lignite mining regions in the Rhineland and in eastern Germany.

Economies of scale and synergies can reduce the levelized cost of electricity (LCOE) in large solar parks to such an extent that feed-in tariffs are no longer necessary. The drop in solar module prices has contributed to this.

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The EEG in Germany only provides for the application of the remuneration rates for certain open spaces (§ 37, § 48 EEG 2017):

The substructure of solar power plants usually only seals a fraction of the natural surface, often less than 0.05% of the actual ground area. The space between the individual rows, which is required to counteract shading of individual rows of modules when the sun is low, contributes to an improvement in ecological quality.

Before construction begins, open-field solar power plants typically undergo an approval process at the municipal level. To utilize an area, it must be rezoned in the land-use plan as a "special solar zone." A development plan is also required, which establishes building rights for the designated area. The municipality is responsible for the planning process. It assesses the spatial impact and environmental compatibility of the project and is expected to involve all citizens and public stakeholders. In addition to the plant size, land use, and technology, the developer's landscape plan is a crucial factor in the decision-making process. This plan describes how the planned open-field solar power plant will be integrated into the landscape and how this will be ecologically enhanced. After consulting with all parties involved, the municipality adopts the development plan. The building permit is then issued.

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Open Spaces and Environmental Protection : In 2005, the German Solar Industry Association (UVS), together with the nature conservation organization NABU, published a set of criteria for the environmentally sound construction of ground-mounted solar power plants. According to these criteria, areas with existing environmental impacts and low ecological significance should be given preference, and exposed locations on highly visible hilltops should be avoided. The mounting system should be designed in such a way that extensive use and maintenance of the vegetation, e.g., through sheep grazing, remains possible. The use of pesticides and liquid manure should be avoided. Nature conservation associations should be involved in the planning process at an early stage; if necessary – e.g., in Important Bird Areas (IBAs) – an impact assessment should be carried out. Monitoring documents the development of the natural environment through annual site visits after construction. The ecological criteria formulated here exceed the legally required minimum standards. Project developers and operators should consider this commitment when selecting sites and operating large-scale, ground-mounted solar power plants.

Studies from 2013 show that solar power plants make a significant contribution to regional biodiversity and that installing a solar park can lead to a considerable ecological enhancement of the land compared to arable farming or intensive grassland use. Besides the age of the plants, the proximity to supply habitats, ideally less than 500 meters, is the decisive factor for colonization and the biodiversity of the plant. The oldest plant with the greatest diversity of habitats in the surrounding area proved to be the best plant in terms of biodiversity in the study. Even after a short time, the reduction of agricultural practices led to an influx of butterflies and an increase in plant diversity. Furthermore, the specific use of the solar park is very important for ecological diversity: excessive grazing has a negative impact. In particular, some mobile animal species, such as butterflies, recolonized the areas after only a short time. In four of the five solar parks studied, the diversity of animal species increased significantly compared to the previously intensive arable farming practices.

 

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