this Good industry electricity consumer finalizes details to celebrate first auction renewable energy In September. These large consumers seek to run a competition in the image and likeness of private auctions held by the Government only between themselves and the promoters of renewable parks, in order to reach long-term supply agreements. “We are waiting for consultations with regulators and the idea is to have comments by the end of July to publish the public consultation and have all the documents to hold the auction in September,” explains the Managing Director of the Association of Companies. Fernando Soto with Large Energy Consumption (AEGE).
The aim is to auction a total of 1,500 to 2,000 megawatts of renewable technology (photovoltaic and wind) capacity, provided the power plants are built in Turkey, in a tender involving new developers selling energy on 12-year contracts to these large consumers. 18 months after the offer, that is, between March and April 2024. soto, employers meet with generators and there is interest in the auction. They are counting on the employer’s association to receive a price of about 30 or 35 euros per megawatt-hour (MWh), as in the last auction organized by the Manager.
So this will be the first renewable energy auction to be held privately outside the Government, but the key to this procedure is that they have Government approval through the Spanish Reserve Fund for Electrodense Assets Guarantees (FERGEI). ), provided by 600 million Euros, 200 million per year for three years. Created at the end of June 2020, this fund is part of the Electro-intensive Industry Regulation approved by the Cabinet in November 2020, and its purpose is to regulate, at the expense of the State, the risks acquired by large companies consuming electricity in long-term trading.
“In addition to the industry’s commitment to decarbonisation, the attractiveness of these auctions stems from its dedication to the use of FERGEI, which gives developers a State guarantee,” admits Fernando Soto. To access this guarantee, the Electro-intensive Industry Code stipulates that 10% of the annual consumption for the industry should come from such contracts and be signed for a period of at least five years.
To gain access to the risk coverage mechanism, companies had to prove they met the requirements “within one year” from its entry into force in November 2021. In other words, they would have until November of this year to sign these agreements, but as Soto confirmed, no individual PPAs were executed using the Government guarantee until the end of last month. “price turmoil” in the last “year and a half”.
Therefore, the Manager, at the request of this employer, increased the accreditation period for these two conditions (10% of consumption from PPA contracts signed for at least five years) with royal decree (third final provision) establishing an indirect cost mechanism for CO2 emissions for three years (until November 2024 is the key to obtaining Manager’s approval).
in spain the percentage of industries with long-term contracts is minimal and the vast majority of companies are exposed to the wholesale market known as the ‘pool’, which has skyrocketed in prices in recent months, forcing some companies to paralyze their operations. Although with this auction, big consumers will have very affordable prices (30 or 25 Euro MWh as they trust) from 2024.
“We have the problem not in 2024, but in 2021 and 2022. So we want them to continue the measures we have today, such as lowering tolls,” says Soto. In this sense, the general manager of AEGE asks the government to initiate the calls. marginal tenders, where it aims to force major utilities to auction off some of their energy To large consumers and independent marketers before December 2021. 5-year offer of electricity companies We would have already signed at a competitive price, but they are not coming because there is no liquidity in the futures market. But it would be better if the electricity companies bid before the government has to go to the tender,” he said.