The government auctions more renewable energy today: 1,500 MW of wind and 1,800 MW of photovoltaic power


This is the fourth auction of renewable power for electricity generation since the first one in January 2021. The firms that are finally awarded the wind and photovoltaic packages will be granted a fixed price at which they will charge for the energy over the next few years. Due to high electricity prices, the tender may be less in demand than on previous occasions. Participating firms will have to assess the profitability of projects at a time when electricity bills have soared and Europe is still grappling with the energy crisis.

Last month, the Ministry for Ecological Transition and Demographic Challenge auctioned power for biomass, distributed photovoltaic and solar thermal. However, the latter quota was left empty due to the fixed cut-off price.

In the event that this happens tomorrow and the entire offer is not awarded, it is accepted that the remaining megawatts can be substituted by the other technology coming onto the market. In other words, there may be modifications depending on the demand for wind and photovoltaic, respectively. The auction implies gas savings of 11,000 gigawatt hours (GWh) per year, according to Servimedia, 2.9% of total gas consumption in Spain in 2021. It would also mean a reduction in greenhouse gas emissions of some 2.7 million tonnes of carbon dioxide equivalent.

The investment required to execute the awarded power is around 2.9 billion euros. In these auctions, developers bid for the price they are willing to charge for the energy generated by their plants over 12 years.

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