The government held another ‘macro-auction’ for renewable energy sources last Tuesday. At stake was 3,300 megawatts (MW) of new wind and photovoltaic power plants, but there was widespread fear from green energy companies and only 45.5 MW were delivered. Disappointment was evident and a sense of failure resounded. But The largest of the execution was refused and no failures were seen, although the proposal was almost abandoned.
All companies except two winners (Elawan and Forestalia) submitted bids above the maximum allowed price. The amount of this limit is confidential, but the results of the proposal show that it is around 46 Euros per megawatt hour (MWh). The rest of the exhibitors were excluded, offering prices even exceeding 50 euros.
The government has devised a new type of auction to promote the deployment of renewable energy sources: companies offer the electricity system a fixed price at which they will sell their green power generation for twelve years, as a way to guarantee a stable cost and adequate profitability for consumers. companies. Inside Previous renewable auctions had an average prize price of around 30 euros per MWh. and these were done with the same bid formula as last Tuesday.
Therefore, the Ministry of Ecological Transition, led by Vice President Teresa Ribera, blames “the current situation with high electricity market prices, high inflation, rising interest rates and tensions in raw materials and equipment” for the bad results of the latest proposal.
WITHOUT CHANGE
In the midst of the energy crisis, market volatility and uncertainty about the future development of prices are what ruined the last auction, not the reward system, according to the manager. And therefore Government excludes changes in design of next renewable tenders Official sources from the Prensa Ibérica group to EL PERIÓDICO DE ESPAÑA confirmed that it will remain unchanged for future appointments.
Actually, The proper functioning of the current system is advocated from the Ecological Transition. and keeping the maximum price formula at a reasonable level is what prevents, in a scenario of extreme volatility, new reasonable power being delivered at a rapidly rising level, meaning that Spanish consumers will have to pay. This high price for twelve years due to the current situation.
In the renewable energy sector, it is claimed that the current inflation situation and the uncertainty in prices are the factors that should be taken into account in the regulation of new electricity auctions. “The current European energy crisis has created an economic situation that must be taken into account when considering tenders,” he says. Wind Businessmen Association (AEE). “The ignorance of inflation, which affects the costs of new renewable facilities and expectations for future electricity prices, was a decisive factor in the low award of the tender.”.
UNREWARDED UNREWARDED
The government has launched a new auction system for new renewable energy to promote clean energy distribution and provide greater stability to prices in the volatile electricity market. As part of its roadmap to decarbonizing the Energy Sector and the economy, the Ministry of Energy Transition’s plan is to launch tenders with a capacity of at least 3,000 megawatts (MW) per year until 2026.
The government’s meeting plans continue new renewable tenders in the coming yearss and will be tendered in larger packages to fully contain the volume of power not given in the last auction.
By last Tuesday, the Government had already held three more tenders in recent years. In total, it has awarded 6,380 MW in total, with its bids for new green power plants (3,302 MW of wind, 2,933 MW of photovoltaic and 146 MW of biomass) that will feed its generation into the electricity system at a fixed price and cheaper than wholesale market levels.
Source: Informacion
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