COVID-19 episode triggers momentary hold-up for Portugal's solar public auction

Mar 27, 2020 05:36 PM ET
  • Portugal's very first solar public auction of 2020 will certainly be delayed this springtime till the COVID-19 situation has actually had the moment to ease off, PV Tech has actually picked up from a leading government official.
COVID-19 episode triggers momentary hold-up for Portugal's solar public auction
Image: Claudio Schwarz / @purzlbaum on Unsplash

Called by this magazine, Energy state assistant João Galamba claimed the tender the federal government had actually at first set up to start in late March will certainly be "stopped briefly" for the time being, while the nation combats the pandemic currently believed to impact 4,200-plus individuals across the country.

Galamba stated the public auction's info session would certainly proceed today (27 March 2020) as initially prepared. The tender itself-- created with an ability of 700MW-- will certainly nevertheless need to wait, the state assistant included.

" I do not understand if it will certainly be a month or 2 months," he said. "The only point I can state plainly is we prepare to go, we are simply stopping briefly for the basic circumstance to relax a little bit. As quickly as we notice the marketplace prepares to join a full-fledged public auction we will certainly release it".

" We desire the public auction to be as effective as the one in 2014 so we will certainly wait a bit," Galamba took place to state. "It does not make good sense to introduce it in the middle of this mess, particularly because we are presenting the storage space technique, which includes intricacy."

The quid pro quo of a storage space public auction technique

Galamba's words concern verify that-- as Energy Ministry spokespeople had actually currently prepared for 2 months back-- Portugal is integrating a storage space method to its solar public auction, instead of holding the different, storage-specific tender the federal government had actually at first drifted.

According to the state assistant, the technique will certainly function as a "quid pro quo" insurance-type plan.

Storage space programmers will certainly get from the system a yearly set cost per MW mounted; by contending in the public auction, they will certainly bid down the rates they are prepared to obtain. In return, they will certainly guarantee the system versus rate surges past a specific degree, compensating it when market value climb up over strike rates.

According to Galamba, the public auction will certainly have these storage space prospective buyers contend for the exact same 700MW ability pot along with both solar methods currently existing finally year's public auction: the programmers bidding process for 15-year fixed-price PPAs, and also those approving to pay in return for the right to generate at market value, likewise for 15 years.

" We are developing the problems for affordable storage space projects to win however we are not guaranteeing that they will," the state assistant stated. "They can defeat the various other 2 alternatives yet whether that occurs will certainly depend upon the characteristics of the public auction itself."

Portugal looks southern on the PV roadway to 9.9 GW.

Portugal's solar tendering initiatives in 2020 can be found in a noticeably much more convulse worldwide setting. Where the nation's 1.15 GW public auction in 2015 impressed with record-low proposals of EUR14.76/ MWh, this year's version will certainly happen versus a background of a market interfered with by the COVID-19 dilemma.

From Germany to France, various other European nations have actually currently acted to relieve sustainable public auction regulations. Portugal, Galamba claimed, will certainly put on hold the due dates from in 2014's tenders for as long as the nation continues to be in a state of emergency situation. "Our message to capitalists is no person will certainly be punished as a result of a pandemic scenario," the state assistant included.

Quizzed over COVID-19's effects up until now for Portuguese solar, Galamba claimed the messages are "blended", varying from programmers able to continue with projects and also those dealing with months of hold-ups. "What we've done is remove administrative obstacles to make certain if a project does not move on is as a result of certain troubles with specific programmers," he included.

Portugal's solar project is indicated to bring 8.1GW-9.9 GW of installs across the country by 2030. In 2015's public auction was open to projects all throughout this year yet the nation's will solely target the southerly areas of Alentejo as well as Algarve. The relocation stems, Galamba stated, from the location's more powerful PV irradiation along with its propensity for bigger land buildings, alleviating the arrangement of agreements.

The state assistant discussed 2020's 2nd solar public auction is still due in concept to occur in the direction of completion of the year, with a measure dimension of 500MW. "We need to rely on all backups however if market problems permit it, after that we're all set to progress with 2 public auctions as set up," he stated.

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