Spain’s Renewables Sector: “Auctions ‘Democratise’ Energy, But They Must Be ‘Well Conceived’

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As reported by Europa Press, in his participation in today’s 4th Renewable Energy Congress organized by APPA, Chairman and CEO of Ence, Ignacio Colmenares, said the auctions of renewables will lead to “competition and the price of energy remaining increasingly competitive.” The government plans to launch the auctions beore the end of this year.

“If there are no auctions and we leave it to the world of the big old electricity companies there will be no real competition. The auction democratises and this is good,” he said. However he added that in his opinion, the targets of 80 megawatts (MW) for biomass in the next auction “seem low.”

In this regard, the non-executive president of Capital Energy, Juan Lasala, said the auctions “are a way to give visibility to the market.” But he stressed they must be “well conceived and designed.”

On the other hand, Lasala highlighted the importance of interconnections to promote renewables, since they will allow Spain to take advantage of a situation of electricity exports by end-2030.

Meanwhile, the Chief Executive of Acciona Energy, Rafael Mateo, considered that the auctions are one more mechanism for the development of renewable energies. But defended that their success “must be measured by the execution of the projects.” In the last auctions held in Spain in 2016 and 2017, around 30% of the projects were not executed on time. Whatsmore, an even greater percentage is not owned by the successful bidders, “which is a bit speculative,” Mateo warned.

He also said that now just as the renewables are competitive, “it is time to stop talking about prices” and focus on their ability to generate employment and provide benefits “far superior” to savings.

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