Renewable auctions calendar for 2020-2025
The Ministry for Ecological Transition and the Demographic Challenge has began the public information period for the Order regulating the first renewable energy auction mechanism under the new remuneration framework.
The text implements Royal Decree 960/2020, of 3 November, which regulates the economic regime for renewable energies for electricity production facilities. The approval of this order and the subsequent launch of the auctions responds to the need to provide a stable framework to attract investment and promote economic activity throughout the energy value chain.
The new system will allow the country’s renewable energies to recover from the health crisis, while at the same time allowing consumers to benefit directly from reductions in the cost of generating these technologies.
The new Economic Regime for Renewable Energies is also essential to comply with the decarbonisation commitments that Spain has made in the Paris Agreement and as a Member State of the European Union. These commitments have been planned in the Integrated Energy-Climate Plan (PNIEC) 2021-2030, which provides for the installation of around 60 GW of renewable energy in the next decade and includes, among its measures, the development of this type of auction. This auction mechanism is therefore complementary to other promotion instruments, such as the support lines for investment in renewables financed by the European Regional Development Fund (ERDF), implemented by the Institute for Energy Diversification and Saving, or the medium and long term electricity supply contracts (PPAs).
The text published on the 6th of November will undergo the public hearing and information process. The procedure will subsequently be specified in a Resolution by the Secretary of State for Energy, which will be published in the Official State Gazette and which will detail the rules to be applied in each auction and the specific date of the call for tenders.
ASSIGNMENT SCHEDULE
The text sets out an indicative timetable for the auctioning of the economic regime for renewable energy, indicating the minimum volumes of accumulated power for each technology in the period 2020-2025.
The calendar will be updated annually and will be geared towards achieving the renewable production targets set out in the National Integrated Energy and Climate Plan.
In the year 2020, auctions will be held for the allocation of renewable energy economic regime for at least 3,100 MW, of which at least 1,000 MW will be used for wind energy; 1,000 MW for photovoltaic and 80 MW for biomass, with the remaining power to be auctioned without technological restrictions.
| Minimum volumes of accumulated power (MW) | ||||||
| Technology/hours | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| Wind | 1.000 | 2.500 | 4.000 | 5.500 | 7.000 | 8.500 |
| Photovoltaic | 1.000 | 2.800 | 4.600 | 6.400 | 8.200 | 10.000 |
| Solar thermal power | – | 100 | 200 | 300 | 400 | 500 |
| Biomass | 80 | 140 | 200 | 260 | 320 | 380 |
| Others (biogas, hydraulics, tidal power, etc.) | – | 20 | 20 | 40 | 40 | 60 |
The above indicative volumes of renewable capacity are cumulative values, the achievement of which will depend, among other factors, on the results of previous auctions. These volumes associated with the auctions shall be complemented, where appropriate, by those resulting from other support instruments for renewables that may be established using other financing schemes, justified by budgetary availability, technological maturity, cost structure or any other technology-specific characteristics.
SCOPE AND AUCTIONED PRODUCTS
The order will make it possible to call for auctions for renewable installations made up of one or more technologies (hybridisation), allowing for storage as long as this is used to manage the energy produced by the installation itself.
The product to be auctioned will be the installed power and the participants will bid the price they are willing to charge for the energy generated by the installation. The auctions may include several differentiated products aimed at different technologies or sets of technologies distinguishable by their specificities. Within each product, minimum product reserves to be allocated to one or more technologies may be established.
In addition, the Resolution calling for the auction may establish additional requirements and conditions to be met in relation to the commitments acquired by the project with the territory, the estimate of its impact on local employment and on the local, regional and national industrial value chain, as well as, in the area of the circular economy, the measures envisaged in relation to the treatment of equipment at the end of its useful life.
With the aim of optimising the integration of renewables in the system and maximising savings for the electricity bill, it can be established that the price resulting from the auction will be corrected with incentives for the successful bidder to participate in the market, introducing a certain exposure of the installations to the electricity market. The order establishes the percentage of market adjustment at 25% for more mature technologies with the capacity to manage their level of production and 5% for those which do not have this capacity.
Source: Press release MITECO
This translation was produced by a machine, no liability is accepted for errors or mistakes.
