Spanish renewable power auction delay suggests broad changes to model

Jon Stibbs

10-Feb-2017

Spain’s wind power association AEE has cautiously welcomed a delay to a long-awaited 3GW auction of renewable capacity into the second quarter of this year, because it gives the energy ministry the chance to improve the structure of the model.

“Everyone wants a good system,” said a spokeswoman for AEE. “We think it can be better.”

The energy ministry ran a consultation period, which closed on 20 January 2017, concerning the auction rules (see EDEM 10 January 2017). At that time the auction was expected to take place in the first quarter of this year and be held in a similar format to a smaller one held in January 2016.

The associations representing Spain’s renewable energy producers, such as AEE and solar power association UNEF, have called for bids to be made to supply electricity into the grid, rather than install new capacity as in the previous auction.

This means projects that are in the pipeline and are already due to be installed, as opposed to completely new projects, could also bid in. Spain has a backlog of renewables capacity that is yet to be installed. This built up as a result of regional competitions prior to the retrospective removal of state support for the sector in 2012.

Broader changes

AEE has urged the ministry to draw up a calendar of auctions with specific capacity goals for each renewable energy source in the run up to the 2020 EU deadline to meet 20% of Spain’s electricity demand with renewable power.

The existing plan only specifies a single auction, which is technologically neutral, meaning all forms of renewable supply, including biomass, will bid to have the right to install new capacity at the lowest price.

At the January 2016 auction all 500MW of wind and 200MW of biomass capacity was won at market price, without any state subsidy.

“We want dialogue to start today and finish soon if we are to meet our 2020 targets,” said the AEE spokeswoman. “This is not just an auction but could be the beginning of a new era.” jon.stibbs@icis.com

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