Spain honors simply 866MW of solar in renewables public auction as prices jump

Oct 21, 2021 11:01 AM ET
  • Spain's most recent renewables public auction closed with solar PV prospective buyers being granted just 866MW of capability, with gamers such as Naturgy and Bruc among the winning participants.
Spain honors simply 866MW of solar in renewables public auction as prices jump
Image: Naturgy

Occurring yesterday (19 October), the auction awarded 3,123 MW-- 95% of the complete 3.3 GW readily available-- of capacity, most of which was for wind, and also gathered average winning bids for all technologies of EUR0.03056/ kWh (US$ 0.03558/ kWh), standing for a 25% rise on the average solar bids in the country's auction earlier this year.

Teresa Ribera, Spain's priest for eco-friendly transition, said the cost rise is "reasonable" thinking about the existing inflationary pressure in materials needed for solar as well as wind projects.

She claimed that in spite of there being marginal engagement from big energy business, the auction protected rate of interest from brand-new players, adding: "The country remains to produce enormous allure for programmers of eco-friendly plants."

Among the companies that didn't take part was utility Iberdrola, which protected 243MW of solar in January's auction as well as just recently stopped investments in some renewables projects in Spain complying with new government procedures targeted at restricting the windfall profits of non-emitting nuclear power plant.

"Iberdrola has actually not entered into the public auction due to the governing unpredictability, which has actually made us reassess our financial investments in renewables in the country," an Iberdrola representative stated.

With wholesale power prices continuing to get to new highs, the government last month presented procedures targeted at limiting the earnings of renewables projects with a capability of higher than 10MW that market outcome on the seller market-- a policy in position till March 2022 that industry onlookers have actually cautioned could startle capitalists.

Among the business that achieved success in the other day's auction were Spanish utility Naturgy, which informed PV Tech it was awarded 221MW of solar PV ability, while fund manager Bruc won 100MW of solar from several lots.

"The rates got to in the public auction reveal that renewable resources are the most structurally effective system to decrease the cost of energy and also, obviously, add to the decarbonisation of the energy system," stated Bruc head of state Juan Béjar.

Reserving at the very least 1.5 GW for wind generation, the public auction saw wind prospective buyers granted an overall of 2,258 MW. According to media records in Spain, Madrid-based Capital Energy was the significant victor, getting 1,540 MW of wind and also 8MW of solar capacity.

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