The Government awards 177 MW in the renewable energy auction, but more than 340 MW remain deserted

MADRID, 26 Oct.

The Government awards 177 MW in the renewable energy auction, but more than 340 MW remain deserted


The third auction of renewables held by the Government under the new 'green' energy economic regime awarded a total of 177 megawatts (MW), of which 146 MW of biomass and 31 MW of locally distributed photovoltaic, but another 343 were deserted MW, mainly thermosolar - of the 520 MW that were at stake due to offers above the maximum price allowed.

In a statement, the Ministry for the Ecological Transition and the Demographic Challenge indicated that the auction was held "in an economic scenario marked by the war in Ukraine that has conditioned the offers of the participants and the results."

The Government auctioned a power of 520 MW for the granting of the REER to installations of thermoelectric solar technology, biomass, distributed solar photovoltaic and other renewable technologies. However, the current situation, with high inflation, rising interest rates and price tensions in raw materials and equipment, has caused participants to submit bids above the maximum price allowed by the auction rules.

Among the awarded companies stand out Acciona (50 MW) and Reolum (46 MW) and Hunosa (50 MW), in biomass) or Enerland, Powertis or Erasp, among others, in distributed photovoltaics.

Specifically, 146 MW of biomass have been awarded at a weighted average price of 93.09 euros per megawatt hour (MWh), with a maximum of 108.19 euros/MWh and a minimum of 72.38 euros/MWh.

These prices are higher than those of other renewables, but biomass is a manageable technology that can produce when needed and that facilitates the operation of the electricity system due to its synchronous nature. In addition, it has an important added value of job creation, mainly in rural areas, and helps to manage and recover forest and agricultural waste.

Likewise, 31 MW were also granted to local photovoltaic solar installations, with power equal to or less than 5 MW, at a price of 53.88 euros/MWh, with a maximum of 62.5 euros/MWh and a minimum of 44 €.98/MWh.

This is a volume of power five times greater than that awarded in the previous auction, "which confirms the good evolution of a type of installation halfway between self-consumption and centralized generation in which citizen participation is decisive", highlighted the Ministry.

The cabinet led by Teresa Ribera indicated that the auction will mobilize economic resources of some 416 million, associated with the manufacture of equipment and the construction of the winning facilities, and the creation of some 4,400 jobs, between direct, indirect and induced employment. . The successful bidders will have to submit a strategic plan with their estimates of the impact on local employment and the industrial value chain.

In addition, he added that the electricity production of the winning installations of the auction will displace generation of fossil origin, mainly gas combined cycles, allowing the saving of 1.7 terawatt hours (TWh) of gas per year -0.45% of consumption of the country in 2021- and avoiding the emission of some 0.35 million tons of CO2 equivalent.

Considering the previous auctions under this remuneration regime, held on January 26 and October 19, 2021, 3,256 MW of wind, 2,933 MW of photovoltaic and 146 MW of biomass have been assigned. The fourth auction will be held on November 22, for wind and photovoltaic.

The National Integrated Energy and Climate Plan 2021-2030 (PNIEC) provides for the installation of some 60 GW of renewable power, with the aim of producing 74% of all the country's electricity. The auctions are held according to a calendar that establishes a minimum number of calls until 2026.