The electricity auction calendar starts to promote renewables. Yesterday, the Government detailed in the ministerial order, which has been submitted to a public hearing, that almost 20 gigawatts (GW) will be awarded until 2025, which represents almost 80% of Spain’s objective set out in the Integrated National Plan for Energy and Climate (PNIEC) for the same period.

“The first bid will be held in December for 3,100 megawatts”

Photovoltaics will be the dominant technology, with a minimum accumulated volume of 10 GW to be auctioned in the next six years, followed by wind, with about 8.5 GW; thermoelectric solar, with 500 MW; biomass, with 380 MW, and another 60 MW destined to other technologies such as biogas, hydraulic or tidal wave, among others.

Thus, the rhythm of auctions estimates a minimum annual average to put into play of about 1,800 MW of photovoltaic power until 2025, about 1,500 MW of wind power, about 100 MW of solar thermoelectric power and about 80 MW of biomass.

Bids of this type have not been held in Spain for three years. With the new rules set by the Socialist Government (the premiums disappear, but a specific amount is set for each technology), the process will start next December, when 3,100 megawatts (MW) are to be awarded, of which at least 1,000 MW will go to wind energy, another 1,000 MW to photovoltaic and about 80 MW to biomass.

In the process, guarantees of 60,000 euros per MW will be required and conditions related to the generation of employment or the economic impact on the territory will be established.

Likewise, the order will make it possible to call auctions for renewable facilities formed by one or more technologies (hybridization), allowing storage provided that it is used to manage the energy produced by the facility itself.

Sources from the Ministry for the Ecological Transition and the Demographic Challenge, led by Teresa Ribera, explained yesterday “that it is too early to calculate how much the entry of more renewables into the electricity system can affect the price of electricity.”

In line with the doubts that have been generated among the large electricity companies by this new auction model, the same sources pointed out that “bids are the best way to promote renewables, since they represent one of the most relevant mechanisms to increase and diversify the generation market in Spain and to incorporate more competition ”.

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.

Each call will be specified by means of a resolution of the Secretary of State for Energy, which will detail the rules that will be applied in each auction.

From the ministry they point out that the objective is to attract investment to Spain and that investors perceive legal security and regulatory stability in the coming years.

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