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Germany's first capacity auction clears at 155,296 EUR per MW a year

The Bundesnetzagentur published the results of Germany's first long-term capacity auction on 3 November 2026. The round, with a bid deadline of 8 September, awarded 11 bids for around 5,160 MW of reduced capacity. The volume-weighted average award value is 155,296 EUR per MW of reduced capacity per year, 36% below the ceiling of 244,000 EUR.

Strong competition for 4,500 MW

The auction called 4,500 MW of reduced capacity. 41 bids came in for around 11,958 MW, roughly 2.7 times the volume on offer. Seven bids were excluded, for example because legally required information or proof was missing.

The awarded volume runs above the target because the bid that first crossed the 4,500 MW line was still awarded. The regulator attributes the comparatively low award values to intense competition between technologies, naming power plants and electricity storage. The regulator has not published a split of the awards by technology.

Where the awarded capacity sits

North Rhine-Westphalia takes the largest share with around 2,118 MW across three awards. Brandenburg follows with around 1,819 MW from four awards, then Saxony with around 910 MW from two, Bavaria with around 269 MW from one and Baden-Württemberg with around 45 MW from one.

The published award list shows nine of the eleven awards held by two companies. RWE Generation holds three in North Rhine-Westphalia and Lausitz Energie Kraftwerke holds six in Brandenburg and Saxony.

What the result means for storage

Awards carry a 15-year commitment period. Successful bidders must post their completion security by the 20th working day after the award. The round therefore locks in a long revenue line for the capacity that cleared.

For battery developers, the most useful output is the price signal. A volume-weighted 155,296 EUR per MW of reduced capacity per year is now the first published benchmark for long-term firm capacity in Germany. It sits well inside the ceiling. Projects that did not clear in this round have a reference point for the next one. The Bundesnetzagentur will announce the second bid date for long-term capacity on 10 November 2026.

Capacity payments are one revenue line among several. For a German BESS asset, the case still rests on how a capacity commitment stacks with balancing, ancillary services, tolling or a PPA. SEMT brings PPA, balancing and ancillary prices across Europe into one place, so the comparison can be run on current market data. You can sign up at https://synertics.io/signup/ or write to info@synertics.io if you would like to discuss it in more detail.