Portuguese government verifies globe record solar rate of $0.01316/ kWh.

Aug 27, 2020 05:57 PM ET
  • The Portuguese government has disclosed some of the preliminary outcomes of the nationwide solar auction which closed on Tuesday. Antonio Delgado Rigal, president of energy forecasting solution Aleasoft, said that the 15-year contracts granted in the auction were the vital to understanding the reason of such an affordable price. This, combined with the civil liberties for land as well as grid link guaranteed by the auction, makes attractive bidding at small cost.
Portuguese government verifies globe record solar rate of $0.01316/ kWh.
Image: Edgar Jiménez/Flickr

The Portuguese federal government has actually revealed a couple of preliminary results of the 700 MW solar power auction finalized on Tuesday.

In a news release, it stated that 670 MW of power generation capacity was alloted, of which 483 MW went to PV projects linked to storage, while the remaining 177 MW as well as 10 MW were designated for projects under the "system payment" commission option and the "contract for difference" routine, specifically.

It additionally validated that the auction drew the globe's cheapest bid for a large-scale PV project at EUR0.01114 ($ 0.01316)/ kWh, which is somewhat lower than the price of EUR0.0112 exposed by Portuguese economic paper throughout the initial day of the purchase workout, and still lower than the $0.0135/ kWh quote sent by French power group EDF and also China's JinkoPower in a 2 GW tender held in Abu Dhabi,.

The statement from Lisbon also claimed 100 MW of power storage space capacity had actually been protected by South Korean module producer Hanhwa Q Cells, likewise the auction's largest PV champion, with 315 MW of project ability designated among half of the 12 project lots provided. Portuguese organisation newspaper Expresso had actually previously reported that Spanish utility Iberdrola, Italian peer Enel as well as renewables designer Tag Energy, part of the French Impala Group, were the various other successful bidders.

The main statement did not point out various other last electrical energy rates or offer project information.

Commenting on the initial results, Antonio Delgado Rigal, president of energy projecting service Aleasoft, claimed that the 15-year agreements awarded in the auction were the vital to recognizing the reason of such an affordable price. This, integrated with the rights for land and also grid connection ensured by the auction, makes attractive bidding at low cost. "Securing land and also connection accessibility for PV parks in Portugal is extra complex than in Spain, although both countries share the same power market," he told pv magazine.

One more vital facet to be considered, according to Delgado Rigal, favors solvency that victors project. "For instance, the outright victor has actually been Hanwha Q-Cells that comes from the Hanwha Group, among the largest business groups in Korea that is sending a message: it has concerned the Iberian peninsula with much monetary solidity.".

" The globe record that has been established is excellent news for the growth of PV as well as especially for Portuguese customers that will certainly have a discount on their expenses," he included. "Notwithstanding, the small cost of this Portuguese auction should not have an influence on the rate of the peninsular electric market nor on the rates of bilateral PPAs over the long-term. "However, EUR0.01114/ kWh is not the rate of PV," he wrapped up.

A year earlier, Delgado Rigal had actually come to the very same conclusion concerning the lowest final proposal of Portugal's first PV auction. That procurement round supplied a solar electricity cost tariff of EUR0.0147/ kWh, marking a brand-new world record for that time.

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