News / IPPToday #25: Spanish renewable auctions allocate 5 GW

IPPToday #25: Spanish renewable auctions allocate 5 GW

🕔 July 27, 2017
IPPToday #173: Statoil to develop 1200 MW offshore wind in Polish Baltic Sea

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Spanish Ministry of Energy, Tourism and the Digital Agenda has announced the allocation of 5,037 MW of capacity in its renewable energy auction. Spain has awarded 3,909MW of solar PV capacity and 1,128MW of wind capacity to 40 companies.

As we informed in May, the government of Spain announced a  3-GW renewable energy auction opened to wind and photovoltaic (PV) projects, inspired by the success of the last auction round. The previous auction resulted in contracts for €43 (US$31.9) per megawatt hour (MWh), the maximum discount rate allowed under the Spanish tendering system. This is the lowest level ever awarded in an onshore wind tender in Europe.

The Energy Ministry stated that the high demand from developers has made it neccesary to enact a clause allowing it to offer out more than the original 3GW. Technologically neutral, this auction awarded contracts to the best offers and with the maximum discount available. 

The ministry stated:

“The discounts obtained guarantee that the energy produced will be remunerated exclusively by the market – i.e without cost to consumers.”

Cobra, a unit of Spanish industrial group ACS, achieved the largest share of PV with 1.55 GW of assigned projects, followed by X-Elio (455 MW), Endesa (338 MW), Forestalia (316 MW), Gas Natural Fenosa (250 MW), Solaria Energía (250 MW), Prodiel (182 MW),  Alter (50 MW), Gestamp Wind (24 MW) and Alten (13 MW).

Regarding wind Alfanar -Capital Energy secured the biggest project with 720 MW, followed by Ibervento Infraestructuras (171,58 MW), Greenalia Power (133,33 MW), Hocensa Empresas Constructoras (49 MW), Fergo Galicia Vento (24 MW), Inverolica de Abella (14 MW), Operación y Mantenimiento de Minicentrales Hidráulicas (6 MW), Boreas Tecnología (5 MW), Grupo Empresarila Enhol (2,5 MW) y Wind Hunter (2,4 MW).

Projects selected in the auction must begin delivering power to the country’s grid on Jan. 1, 2020. 

Spain is currently far ahead of forecast targets for achieving the goal of 20% renewables in its total energy consumption by 2020. The country posted a 17.3% penetration rate by renewables in final energy consumption in 2014, including biofuels. This compares with the forecasted rate of 12.1%. The Ministry of Industry, Energy and Tourism forecasted a similar figure for 2015. Bearing in mind that it was a year of lower-than-average water resources and little wind, this confirms an upward trend in penetration by renewables.

According to Eurostat, Spain has a higher rate of penetration by renewables than the European Union average. Furthermore, Spain is ahead of most of the countries in the same peer group (such as France, Germany, the United Kingdom, the Netherlands or Belgium), both in terms of having a higher rate of penetration by renewables and because it is closer to achieving its target for 2020.

This tenders were launched by the Spanish Government to help the country achieve its target to cover 20% of energy consumption from renewables by 2020.

We have lately informed about the following solar and wind projects in Spain:

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