PV Wins Close To 4 GW In Spanish Auctions

Winning Big In Spain’s Second Renewables Auction, Solar Has Been Awarded Now Almost As Much Capacity As Wind in the two 2017 Auctions
04:35 PM (Beijing Time) - 31. July 2017
n_markets_spain_PV Wins Close To 4 GW_ab 2017-07-27

Solar PV has secured 3,910 MW of cumulative capacity in the two renewable energy auctions held in Spain this year, yet wind has won even a little more.

Key Takeaways

  • Spain awarded over 5 GW in its second renewable energy auction, which was originally planned as a 3 GW tender
  • Out of 5,037 MW allotted to 40 companies, solar PV has won 3,909 MW, wind has lapped up 1,128 MW
  • The capacity awarded in the first and second auctions needs to come online before 2020

Having lost big time to wind power in the previous auction in Spain, PV seems to have come back with a long due victory. In the second technology neutral renewable energy auction, PV won 3,909 MW compared to 1,128 MW going to wind power plants.

In the first renewable energy auction held earlier this year, PV could manage to win only a negligible 1 MW of the 3 GW capacity auctioned – the big winner was wind power.

For the second tender, the Spanish Energy Ministry extended the original tendered capacity of 3 GW by over 2 GW, finally awarding a total of 5,037 MW of renewables. It attributed this to ‘high demand’. The entire capacity has been awarded to 40 companies.

While the ministry did not share details about the winners, Reuters reported that Spanish construction company ACS won 1,550 MW of solar power capacity through its subsidiary company, Cobra. X-Elio won 455 MW of solar.

Enel Green Power España won 339 MW of solar capacity. The company aims to invest around €270 million ($316.7 million) in the construction of this capacity. The projects will be located in the regions of Murcia and Badajoz.

Other winners are Gas Natural and Solaria, which were were awarded 200 MW and 250 MW, respectively.

Through the two auctions Spain has awarded a total of 8,037 MW of new renewable energy capacity of which PV won 3,910 MW, wind 4,107 MW and other technologies 20 MW. The capacity awarded in both auctions needs to come online before 2020.

Spain has huge power generation overcapacities. But as many EU countries that still have some way to go to meet their 2020 renewable energy targets, Spain is now pushing renewables to comply with its 20% goal. It is on a good way – end of 2015, it had already reached 17.3%. As all projects of the auction need to be operational before 2020, the finishing line is in sight.

At the end of 2016, Spain’s renewables capacity was 47.9 GW, with 23.1 GW coming from wind, 17 GW from hydro and nearly 7 GW from solar.

In June 2017, Spain’s Canary Islands said they were planning to launch its own wind and solar PV auction. Its bidding details were to be submitted to the National Competition Market Commission before July 31, 2017 (see Canary Islands Planning RE Auction).

 

Anu Bhambhani

Anu Bhambhani is the News Editor of TaiyangNews

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Anu Bhambhani