Portugal sets price caps for 700 MW solar auction

The price ceilings for Portugal's upcoming solar auction targeting 700 MW have been set at EUR 41.54 (USD 46.13) and EUR 41.73 per MWh depending on the lots, according to procedure documents released last week.

Portugal is auctioning 12 lots in the southern regions of Algarve and Alentejo. On Friday, the government held its second information session regarding the auction in which it presented the conditions for the bidding process to be held at the end of August.

For the first time, this year's tender will include a battery storage option, whether it is solar photovoltaic (PV) plus battery, concentrated solar power (CSP), solar PV plus CSP, or other combinations. The two renumeration options from the 2019 auction are maintained.

Energy state secretary Joao Galamba said that the country expects to put the winning projects in operation by the end of 2024 but if the conditions are met sooner, it will connect the plants earlier.

Further information and documentation can be found here.

Last year, Portugal held a 1.4-GW solar tender in which it achieved an average price of EUR 20 per MWh and in one case a record low price of EUR 14.76 per MWh. The ceiling price at the time was EUR 45 per MWh.

(EUR 1 = USD 1.110)

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