Renewable Energy Auction

The Ministry for the Ecological Transition and the Demographic Challenge (MITECO) has approved the first resolution to call for renewable energy auctions with the new remuneration framework. The regulatory process is completed to offer a stable framework that attracts investment and encourages economic activity throughout the country's renewable energy value chain in a recovery scenario after the health crisis, while allowing consumers to benefit directly from the reductions in the generation costs of these technologies.

The Spanish government has awarded a total of 3034 MW of wind and solar power capacity in the first renewable energy auction held since July 2017. A total of 2036 MW was awarded to solar photovoltaic PV projects, while bidders on wind benefitted with 998 MW. As a result of the first tender 26 Jan. 2021, a total of 3034 MW has been assigned, distributed among 32 agents, of which 2036 MW correspond to photovoltaic technology and 998 MW to wind technology. The auction resulted in a weighted average price of 24.47 EUR/MWh for PV technology and 25.31 EUR/MWh for wind power, an average of 43% lower than the long-term.

 

MITECO has convened to open a new auction in October 2021, for 3,300 MW of wind and solar photovoltaic capacity, of which 600 MW should be in operation by September 2022, and the rest commissioned before the end of June 2024. Additionally, 300 MW will be assigned for small PV installations. Another auction is also planned in 2021 for at least 200 MW of solar thermal, 140 MW of biomass and 20 MW of other technologies. 

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