First Subsidy-Free Solar Park in Germany

BayWa r.e is building Germany’s first subsidy-free solar park, proving that solar energy can now compete against conventional energy sources in Germany without any financial subsidies.

The project Barth V, some 30 kilometres east of Stralsund, has a total capacity of 8.8 MW and construction will start at the beginning of June.

Benedikt Ortmann, Managing Director at BayWa r.e. Solar Projects GmbH, emphasises: “With our 175-MW solar park Don Rodrigo, which we built in southern Spain at the end of last year, we have already shown that solar power can be generated today more cheaply than conventional power. While experiencing lower irradiation values, we have now proved subsidy-free is possible in Germany too. We are very proud to be ushering in a new and exciting era for renewable energy generation.”

The electricity generated is to be supplied to an industrial partner via a long-term Power Purchase Agreement (PPA). Negotiations are currently underway with various interested parties. The in-house energy trading subsidiary BayWa r.e. Clean Energy Sourcing GmbH (CLENS) will be responsible for marketing the electricity.

The project benefits from previous projects at the same site. For example, cable routes and network connections were planned at an early stage. The optimised planning and system design by BayWa r.e., as well as the close collaboration with the land owner and the local communities, have also made the realization of the project possible.

The project will be financed through long-term, non-recourse financing by an experienced German bank.

 While the realisation of the first subsidy-free solar project in Germany is a milestone moment, the EEG will continue to play a central role in the success of the green energy revolution over coming years, particularly in support of smaller and medium sized residential and commercial plants.

Matthias Taft, Member of the Board responsible for the energy business, BayWa AG, adds: “Although in some cases it is possible to build small and medium-sized  self-consumption projects without subsidies in Germany, they will still be needed to support this segment of the market moving forward. In addition, subsidies for solar solutions for residential housing will also remain important as a means of encouraging the participation of broad sections of the population and to help facilitate the development of a decentralised, near-load supply.”

The solar park will be erected on the site of the Baltic Sea airport Stralsund-Barth. Due to its rental income, the municipal airport is one of the few that can be operated economically and independently of public funds.

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