€0.01489/kWh Lowest Winning Tariff In Spanish RE Auction

Solar Sweeps 1st Renewable Energy Auction Of Spain Under New Remuneration Framework Winning Over 2 GW With Lowest Winning Tariff Of €0.01489/kWh

€0.01489/kWh Lowest Winning Tariff In Spanish RE Auction

Spain’s maiden renewable energy auction under REER regime selected 3.034 GW of new solar PV and wind energy capacity with winning tariffs (in the picture) coming below market price, according to MITECO. (Source: MITECO)

  • MITECO has selected 32 bids to award 3.034 GW of solar PV and wind power capacity in the country’s 1st renewable energy auction under REER regime
  • 036 GW was won by solar PV, while 998 MW was awarded to wind energy projects
  • Lowest winning tariff was determined for solar PV technology as €0.01489 per kWh

Spain’s Ministry for the Ecological Transition and the Demographic Challenge (MITECO) has adjudged solar PV technology as the dominant winner of the country’s first renewable energy auction under the new remuneration framework—Economic Renewable Energy Regime (REER)—announced in December 2020 (see Spain To Launch RE Auction On Jan. 26, 2021).

The auction was oversubscribed with 84 proposals coming in for the 3 GW offered adding up to a total of 9.7 GW capacity, but the ministry awarded 3.034 GW in the form of 32 bids. Of this amount, 2.036 GW was won by solar PV while remaining 998 MW was won by wind energy.

The lowest winning tariff under the auction was determined as €0.01489 per kWh for solar PV projects with the maximum for this technology going up to €0.0289 per kWh, while the weight average tariff was €0.02447 per kWh.

In comparison, for wind energy, the minimum and maximum winning tariffs ranged between €0.020 per kWh to €0.02889 per kWh, with the weighted average tariff of €0.02531 per kWh. All of this is below current market price aimed at contributing to further reduce the cost of electricity production. Successive auctions under the REER regime will generate a cumulative effect to guarantee a cheaper and cleaner generation.

This 3.034 GW renewable energy capacity is expected to mobilize investments worth €2.1 billion associated with the manufacturing of equipment and construction of facilities awarded, while creating jobs for some 27,000 people.

“The positive results of this first auction show all the potential that renewables have in our country. Being the cheapest source of generation, incorporating clean sources into the system quickly translates into savings for homes, companies and industries, in generating activity and jobs in segments in which Spain is at the forefront, and in a less dependence on foreign energy,” said Spanish Vice President and MITECO Head Teresa Ribera.

Solar PV projects awarded in the round need to come online before February 28, 2023 and wind installations before February 29, 2024.

According to Spanish news portal El Periodico de la Energia, the winner of a 30 MW solar PV capacity with the lowest winning tariff of €0.01489 per kWh was Ignis Group—in all it won 125 MW PV capacity.

The following companies were the top winners with X-Elio taking home the largest share:

  1. 315 MW won by X-Elio,
  2. 243 MW by Iberdrola,
  3. 197 MW by Naturgy,
  4. 180 MW by Solaria,
  5. 175 MW by Elawan,
  6. 150 MW by ib vogt,
  7. 106.6 MW by Acciona,
  8. 98.4 MW by EDP Renovables,
  9. 86 MW by Hanwha Energy,
  10. 85.09 MW by Engie Espana,
  11. 81.2 MW by Akuo Renewables.

Endesa, Dominion Energy, Falck Renewables, Renewable Rivers, NRG, Q-Energy, Canadian Solar, Prosoly, Alter Enersun, Lightsource BP and Cube Energy were also identified by the news portal as other PV winners in the maiden renewable energy auction round.

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

Latest Videos

Loading...
Subscribe To Our Taiyang NewsLetter 
Enter your email to receive our daily solar sector updates.