Spain To Hold Renewable Energy Auctions To Suit All Tastes

renewablesSpain's solar plant

Spanish Industry Ministry is preparing new renewable energy auctions. It plans to invite tenders for between 3,000 and 4,000 technology neutral MW. That means auctions in which any kind of renewable energy can compete: wind, biomass, thermosolar, photovoltaic etc. Some 1,000 MW would be awarded this year and the rest in 2017. This auction will use the same race to the bottom bidding system as the one held at the beginning of the year,.

The first renewables bidding option since 2013 was organised in January and the result was surprising: a 100% rebate in premiums. In opinion of  Bankinter analysts:

In other words, the successful bidder commited to not charging more than the wholesale market. But we think that this situation won’t be repeated given that there is complete freedom to buy and sell without a premium, at market prices, without having to participate in an auction.”

On the other hand, this new boost for the renewables is happening to ensure Spain complies with the EU directive of fulfilling at least 20% of its total energy needs with renewables by 2020. Experts add:

“That said, Spain is well positioned compared with other European countries given that in 2015 it generated 92,897 GWh of renewables, 37% of the total.”

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.