Record 45GW of renewables capacity to be auctioned in Europe this year

Jan 8, 2021 03:13 PM ET
  • This year is readied to be a record-breaker for renewables auctions in Europe, as countries across the continent look to increase clean energy deployment to get to 2030 exhausts reductions targets.
Record 45GW of renewables capacity to be auctioned in Europe this year
Image: Akuo Energy

That is according to a brand-new evaluation from Wood Mackenzie, which reveals 45GW of capacity is in the 2021 auction pipeline, a quantity significantly more than those targeted in the last few years. That figure is said to include 6GW of solar, 17GW of wind and also the remainder either technology-neutral or relating to numerous resources.

However, the research claims previous auction results suggest there is no warranty that the targeted volumes will certainly be attained-- over the past 3 years, European auctions have seen a typical honor price of 70%. If this same level is gotten to in 2021, there could be greater than 30GW of capacity granted.

Planned bidding process processes for this year consist of the UK's 4th allocation round of its Contracts for Difference plan, which will certainly see the nation target 12GW of awarded renewables ability-- more than double the previous auction round. France will certainly look to auction 2.9 GW of solar this year, while a minimum of 1GW of PV will be granted in the initial of Spain's new clean power auctions, set to happen later on this month.

On the other hand, following its record-breaking auction last year, Portugal is currently planning a tender for "non-conventional surface areas", with both floating PV and installations beside motorways to be included, as the federal government looks for to check out unused and cheaper land that can include solar projects.

With solar PV and also wind set to stand for most of the capacity obtained through this year's auctions in Europe, the non-dispatchable nature of these modern technologies provides a versatility obstacle for power systems, according to Rory McCarthy, Wood Mackenzie elderly research study supervisor.

"This has actually currently started to manifest in several markets, with adverse day-ahead and intra-day power rates taking place throughout periods of high non-dispatchable sustainable generation and also reduced need. Coronavirus-related demand problems apart, expect the regularity of negative prices to increase," he said.

While nations throughout the continent count on auctions to ramp up renewables ability, problems have actually been elevated concerning the ability of auctions to attain release targets, partially as a result of them being undersubscribed or project terminations. A report released last month from 4 thinktanks recommends that an international dependence on auctions is hindering the growth of tidy energy and also stopping working to offer fair accessibility to the marketplace for smaller gamers.