May 18 (Renewables Now) - Italian utility Enel SpA (BIT:ENEL) has won 540 MW of wind projects in Spain’s 3-GW tender through local subsidiary Endesa SA (BME:ELE).
The company said on Wednesday that Enel Green Power Espana (EGPE) will invest about EUR 600 million (USD 667m) to build the wind farms in the regions of Aragona, Andalusia, Castile and León and Galicia. They are to go online in 2019 to help meet Spain's target for 20% renewable energy by 2020.
The wind power plants will be selling their output, estimated at roughly 1,750 GWh per year, in the Spanish pool market. Through the tender they were awarded incentives by the Spanish Government, in the form of yearly capacity payments, for which Enel did not disclose any amounts.
EGPE, fully owned by Endesa Generación, and operates about 1,675 MW of capacity in Spain, mostly wind.
Wind farms generated 22.7% of Spain’s power in the first four months of 2017. The country has over 23 GW installed, but the last few years have been tough for the sector because of unfavourable policy that led to zero deployment.