UPDATE - Spain confirms 3.3-GW renewables auction was light on awards

Spanish renewable energy developers Forestalia and Elawan Energy were the only bidders to secure capacity in Spain’s renewables auction for 3,300 MW of wind and solar power, the ministry for the ecological transition said on Wednesday, confirming multiple media reports that the competition awarded next to nothing.

Elawan won with a 20-MW wind project, submitting a price of EUR 39.88 (USD 41.34) per MWh. Forestalia, participating as Nearco Renovables, was successful with three wind projects -- two of 10 MW and one of 5.5 MW, pricing them at EUR 45.01, EUR 45.06 and EUR 45.12 per MWh.

The end result is a weighted average price of EUR 42.78/MWh for a total of 45.5 MW of wind power.

The official report on the auction outcome can be seen here (page 5): https://energia.gob.es/renovables/regimen-economico/Documents/RD960_Resolucion_cuarta_subasta_TED-1161_firmado.pdf

Industry sources told media in Spain that the ministry pushed the ceiling price too low for most bidders, to around EUR 45/MWh compared to an average EUR 60/MWh that promoters were willing to charge for their wind and solar power production.

For the ministry, the auction was happening under the shadow of “the economic context marked by the war in Ukraine”, and high electricity market prices, high inflation, rising interest rates and tensions in the raw materials and equipment markets shaped the bids and the results. The ministry stood by its cap, stating that it prevented the current economic situation from forming award prices that would be above structural levels during the 12 years of regulatory support for wind and solar.

(EUR 1.0 = USD 1.037)

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