Friday, July 1

The Government will try again to attract the small producer in a new renewable auction

New auction from renewable energy. The ministry for the Ecological transition plans to hold a small renewable auction on 6 of April of 2022, according to the proposal that has been put out for public consultation this Thursday. At stake there will be 500 megawatts of power, far from the 3,000 megawatts of the two previous bids, of which 200 megawatts will be from solar thermoelectric, 140 megawatts for biomass and 20 megawatts for other technologies such as biogas, hydraulic or tidal wave. In this way, it is a question of complying with the auction calendar until 2025, designed by the Executive, which promised to auction 19,500 megawatts of different technologies until 2025. In addition, 140 megawatts are included for small photovoltaic installations in a new attempt by the Executive to attract these producers.

In the previous auction, which was held in October, 300 megawatts were reserved for distributed solar, but only 5.75 megawatts were awarded. The sector alluded to “very restrictive” conditions as it had a marked local character (the population near the site and citizen participation were taken into account), while Executive sources pointed to the maximum reserve price that it is secret and that it could have meant the disqualification of some small projects.

In fact, after knowing the results of the contest, the vice president and minister for the Ecological Transition, Teresa Ribera, acknowledged that the quota reserved for “tiny facilities” had not yet managed to settle “as an attractive and generalized approach”, but advanced that they would continue to “maintain it in the following calls.” “We believe that it is a bet that worth”Ribera said two months ago.

And so it has been, in the small auction that the Executive plans to hold in April of next year a new specific reserve for these facilities is included and conditions are maintained from the previous auction. Thus, among other requirements, the owner of the facility must be a cooperative of at least 10 members; an administration or local public entity such as a city council or that 25% of the capital stock or the financing necessary to carry out the project comes from 4 local participants.

“Specific support for small distributed generation systems responds to the fact that provide greater efficiency, because they require less network infrastructures and reduce energy losses in them; The need to democratize the electricity system has also been considered, seeking the active participation of citizens, as well as other agents, such as SMEs and local entities, in the deployment of renewable technologies “, explains the department headed by Teresa Ribera in her release.

Third auction

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It is the third auction that has been held since Vice President Ribera arrived at the Ministry for the Ecological Transition and shelved the previous model, designed by the former minister. Alvaro Nadal in which the power of the projects was auctioned and not the generation, as is done now, at a fixed price per megawatt-hour. The first was held almost a year ago, on January 24, 2021, with 3,000 megawatts, while the second, also with another 3,000 megawatts available, took place last October. Between them, a total of 2,902 megawatts of photovoltaic technology and 3,256 megawatts of wind technology have been allocated.

In both contests Capital Energy was consolidated as the great winner, along with Forestalia, while the traditional electricity companies sidestepped, especially in the second of the bids that was held in the midst of enormous tension with the Government for the ‘hack’ by the rise in gas prices. The Executive also has pending to convene the auctions of power purchase contracts in which the dominant operators -Iberdrola, Endesa, Naturgy and EDP- must offer a percentage of their generation capacity so that small retailers and large consumers and industries can acquire it and, thus, lower the price of this supply.

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