Photo voltaic has gained the majority of capability on provide in Spain’s newest renewable vitality public sale. However onshore wind bids have stunned analysts by coming to inside a hair’s breadth of the common worth for PV.

The Spanish tender — the primary since 2017 — this week noticed photo voltaic carrying off 2,036 megawatts of capability at a mean weighted worth of 24.47 euros ($29.63) per megawatt-hour and onshore wind taking 998 MW at €25.31 ($30.66) per MWh, a distinction of simply $1.03.

Photo voltaic had been tipped to be the massive winner within the public sale, which featured a gigawatt of capability every for PV and onshore wind plus an additional gigawatt with no expertise restrictions. Though any expertise might probably bid into the third allocation, within the occasion PV swept the board.

“I imagine everybody anticipated PV to win the total allotment of the technology-neutral pool attributable to its superior economics on this market,” commented Brian Gaylord, Wooden Mackenzie principal analyst for Latin America and Southern Europe, in an e mail.

“That mentioned, I do not suppose anybody anticipated the pricing to be this shut. General, I believe the pricing for PV was a bit increased than anticipated whereas wind is considerably decrease than was anticipated. Above all, the proximity of the pricing for the 2 applied sciences might be the massive take away for me.”

General, he described the pricing as “responsibly aggressive.”

Capital Vitality wins large

The bottom bid for photo voltaic, at €14.89 ($18.04) per MWh, was for a 30 MW photo voltaic plant from Ignis Desarrollo, a part of a Madrid-based vertically built-in vitality agency that took 125 MW of capability total. This worth is alleged to be a 3rd of the bottom photo voltaic bid in Spain’s final public sale.

The bottom wind bids, in the meantime, got here from Spanish undertaking developer Enerfín, which provided €20 per MWh for 2 10 MW tasks of the 40 MW it was awarded within the public sale.

On the prime finish, PV and wind virtually tied on worth, with the very best bids coming in at €28.90 ($35.01) and €28.89 ($35), respectively.

The massive winner within the contest was Spanish renewables developer and retailer Capital Vitality, which picked up 620 MW’s value of wind tasks so as to add to its 30 GW Iberian Peninsula pipeline.

X-Elio and Iberdrola additionally emerged with vital wins, taking 315 MW and 243 MW of photo voltaic capability respectively.

A complete of 32 builders have been awarded capability within the public sale, which the Spanish Ministry for Ecological Transition and the Demographic Problem mentioned attracted 84 bidders with a mixed 9.7 GW of tasks.

“The set up of those three,034 MWs will mobilize investments value round €2.1 billion [$2.5 billion], using round 27,000 employees,” mentioned the Ministry in a press launch.  

The common worth within the public sale was 43 p.c decrease than present long-term electrical energy pricing, the Ministry mentioned.

New public sale format for 60 GW push

The timing of the public sale was fortuitous: because the early outcomes have been coming in on Jan. 26, Spain’s Minister for the Ecological Transition and the Demographic Problem, Teresa Ribera Rodríguez, was going through questions over hovering electrical energy payments brought on by freezing climate throughout the nation.

“Within the final two years we’ve adopted greater than 50 measures round methods, planning, market reform, renewables integration, storage, self-consumption or vitality effectivity, all key to the progressive discount of vitality prices,” she mentioned.

This week’s public sale was the primary in Spain to make use of a brand new pay-as-bid mannequin that changed a flawed scheme employed in tenders throughout 2016 and 2017. It will likely be used for annual auctions up till 2025, because the nation strikes in the direction of a goal of 60 GW of extra renewables capability by 2030.

Spanish renewables associations corresponding to APPA Renovables praised the brand new public sale design over its predecessor but in addition highlighted perceived shortcomings within the tender course of.

“A excessive stage of participation is magnificent information for the sector, however simply as with the auctions in 2016 and 2017 the success might be measured when it comes to the tasks that in the end get linked to the community,” mentioned José María González Moya, APPA’s managing director, in a press launch.

Juan Virgilio Márquez, CEO of the Wind Business Affiliation (Asociación Empresarial Eólica), echoed this sentiment.

“The effectivity of the latest public sale ought to be measured by the ratio of tasks really executed inside the timeframe assigned and by the optimistic affect they’ve on the availability chain,” he mentioned in a press assertion.

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