€-4.00/MWh Floating Solar Tariff In Portugal

• Portugal has picked EDPR, Endesa, Voltalia and Finerge as the winners of its 1^st floating solar PV auction
• EDPR won 70 MVA grid connection capacity in the CFD auction for a negative tariff of €-4.00 per MWh
• This means the company will pay the grid this much for every MWh generated by the floating PV project
• Additional capacity it will be able to grid connect with the 70 MVA win, will be sold on the open market to recover costs for floating solar, according to Expresso

The 1^st floating solar auction of Portugal has achieved a negative tariff of €-4.00 per MWh from one of the winners, EDP Renováveis (EDPR) for 70 MW capacity it will deploy at Alqueva dam reservoir, with other winners reported as Endesa, Voltalia and Finerge.

EDPR says it secured 70 MVA of grid connection capacity at Alqueva with a contract for difference (CfD) of -€4.00 (-$4.37) per MWh for 15 years. According to local newspaper Expresso, the negative pricing means EDPR will pay the electrical system €4.00 for every MWh generated by the 70 MW floating solar project it will build at the reservoir under the auction for 15 years. The project is expected to come online in 2025.

EDPR said the 70 MVA capacity is enough to install up to 154 MW renewable capacity in the form of 70 MW floating solar, as well as an additional 14 MW solar, and 70 MW of hybrid wind capacity. Expresso said EDPR will sell power generated by the additional capacity on the market to recover the investment on floating solar project.

Endesa is another company that has announced having won 42 MVA connection rights for the installation of a 42 MW floating solar power plant of unidentified capacity in the Alto do Rabagão reservoir. Estimated to cost €115 million ($125.57 million), the facility is scheduled to enter commercial operations in 2026. The company recently also secured connection permit for its hybrid solar, wind, storage and electrolyzer project in Portugal which will replace its Pego Coal Power Plant (see Hybrid Project With 'Largest' Battery In Europe).

Local media reports identified France's Voltalia and Portugal's Finerge as the other winners of the auction.

Portugal had launched the floating solar tender in November 2021 offering 263 MW floating solar power capacity for 6 dams, with the largest capacity of 100 MW reserved for Alqueva Dam (see 263 MW Floating Solar Auction Launched).

Portugal's solar auctions have been receiving record low solar bids in the past. However, due to Covid and as module prices have increased considerable over the last year, the installation deadline for the 2019 and 2020 auctions were delayed significantly.