Spain awarded contracts for more than 5GW of renewables

The Spanish Ministry of Energy awarded a total of 5,037MW after its latest auction, although although the action was initially seeking for 3,000MW. 

Last week, the Spanish Ministry of Energy announced the results of its latest auction, which was launched in May 2017.

Of the total auctioned power, 3,909 MW have been awarded to photovoltaic installations and 1,128 MW to wind farms, distributed among 40 companies.

The high number of applications received confirms the interest of national and international investors in renewable energy in Spain, making the Ministry amend the 3,000MW cap.

The auction was technologically neutral, meaning that it invited all sort of renewable energy technologies with no minimum of maximum limit for each technology.

Thus, the process through competitive bids allowed the Ministry to award contracts in the more cost-effective bids.

The prices were negotiated at the maximum discount, obtaining guarantee that the energy produced will be remunerated exclusively by the market, in the same way as conventional non-renewable technologies, without additional premium by the electricity system in the central scenarios of electric pool prices.

This means that consumers will not be bear any additional cost in their electricity bill.

Together with the auction which ended last May, a total of 8,037 MW of new renewable power have been awarded, distributed among 3,910 MW photovoltaic, 4,107 MW wind energy and 20 MW corresponding to other renewable energy technologies.

This distribution guarantees a balanced mix with participation of all technologies.

The awarded projects will have to be operational before 2020.

In order to guarantee the solvency of the offers received, a system of economic guarantees has been established that, as milestones in the execution of the projects will be fulfilled, will be gradually returned to the promoters.

For the PV development, Spanish companies include Alten el Casar (13MW), Alter Enersun (50MW), Cobra Concesiones (1550MW), Enel Green Power Espana (338MW), Gas Natural Fenosa Renovables (338MW).

For the wind development, Spanish companies include Ibervento Infraestructuras (171MW) and Greenalia Power (133MW).

The biggest international contract was awarded in Saudi Arabia- based Alfanar Group to develop 720MW of wind farms.

Check the full list of awards here.