Europe's biggest solar park starts construction at former lignite mine in Germany

Construction started June 8 at Europe's biggest solar park, a 650 MW project at a former lignite mine in Eastern Germany.

Developer Moveon Energy plans to start commercial operations in Q2 2023, it said.

The subsidy-free project was acquired by Signal Iduna and its finance unit Hansainvest Real Assets, the Germany-based insurance company said June 8.

No financial details were provided, but output will be marketed via long-term power purchase agreements with industrial and other energy-intensive users, it said.

Saxony's prime minister Michael Kretschmer said the Energiepark Witznitz at the former Witznitz II lignite mine some 30 km south of Leipzig would make a significant contribution to the lignite coal phase-out by 2038 at the latest.

The mining region already hosts a number of similar projects at a smaller scale with some 9 GW of potential for solar projects in the region based on 48,000 hectares of potential land for such development, according to a 2018 report.

Solar capture prices in Germany averaged Eur100.50/MWh in 2021 and could double this year after record highs in the first quarter.

Daily values averaged Eur161.11/MWh in May despite record generation, data from S&P Global Commodity Insights show.

Only lignite exceeded the 7.67 TWh generated by solar in Germany's power mix in May, transmission systems operator data show.

German solar could be most at risk from cannibalization price effects amid the forecast boom to achieve a 200 GW target in 2030.

S&P Global sees German solar capturing 85% of annual price values in 2025, falling to only 57% in 2030, according to a long-term forecast published March 29.