Portugal floating solar auction gathers record negative price, awards 183MW

Apr 6, 2022 02:04 PM ET
  • Portugal's very first floating solar auction closed with a world record-low price, with utilities EDP and also Endesa among the winning bidders, the nation's environment ministry has actually announced.
Portugal floating solar auction gathers record negative price, awards 183MW
Image: EDP

According to provisionary results of the auction hung on Monday, 183MW of floating PV capacity was awarded, of which 103MW is backed by contracts for difference (CfDs) as well as 80MW by compensation paid to Portugal's National Electric System (SEN).

EDP subsidiary EDP Renováveis posted the lowest proposal of -EUR4.13/ MWh (-US$ 4.51/ MWh), safeguarding a 15-year CfD for 70MW of floating solar it will certainly mount at the Alqueva dam in the south of the nation.

The firm claimed that along with the contract-backed floating solar, the grid link it protected through the auction will enable it to release an added 14MW of solar and 70MW of wind, to be functional in 2025.

"This project is a clear instance of value production with hybridisation of renewable technologies as well as optimisation of grid link," EDP Renováveis stated.

Spanish utility Endesa, with its Endesa Generación Portugal subsidiary, was granted 42MW of floating solar, to be released at the Alto Rabagão dam. Endesa claimed it will invest around EUR115 million to construct the project, which is because of start operations in 2026.

Portuguese renewables driver Finerge was granted three whole lots at different dams, corresponding to a total of 38MW of floating solar capacity. Regional media likewise reported that French programmer Voltalia was awarded one great deal. PV Technology has actually called the business for verification.

"The floating solar auction verified to be a success, with Portugal breaking a new record by setting the most affordable energy price worldwide," the environment ministry claimed in a statement.

After executing two previous solar auctions, in 2019 and 2020, which both gathered record-low prices, Portugal's floating PV tender resulted from allocate 262MW of capacity at seven dams across the country.

Nevertheless, one of the lots-- for 50MW to be installed at Castelo de Bode-- only had one bidder. This bidder has 5 days to make an enhanced deal, after which there will certainly be an estimation to determine if it achieves success.

While winning bidders will certainly safeguard 15-year contracts, they get a concession to the water surfaces for thirty years, implying they can proceed producing electricity from the projects after the contracts end.

The outcomes were welcomed by Portugal's secretary of state for energy, João Galamba, that claimed in a tweet on Monday that the auction stands for "a phenomenal result" for the country.

Having been promised into workplace recently, Portugal's new federal government is intending to boost the share of renewables in electricity production in the nation to 80% by 2026, 4 years earlier than previously intended.

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