Maximum expectation in the third renewable auction

The Canary Islands increase the amount of renewable energy

According to forecasts, the quota will be filled with the Higher percentage possible discount with respect to the cost of the investment.

The third major auction of renewables, with which the Government plans to almost meet the objectives of the 2020 plan of the European Union, will be held today, Wednesday, July 26. Like the previous one, 3.000 megawatts (MW) of power between wind and photovoltaic projects, expandable according to discretionary criteria of the Ministry of Energy.

development of renewables

This is the third auction held for the installation of new renewable power after the moratorium that began in 2012 and the subsequent modification of the remuneration regime for renewables, which went from a bonus system at reasonable remuneration throughout the useful life of the facilities.

The Government has called this new auction, which is held only two months after the previous one, due to the large offer that was left uncovered in the previous bid, in which offers were submitted for 9.000 MW -XNUMXx the capacity that was awarded-, of which three-quarters offered maximum discounts, which, like those who were assigned power, would not receive bonuses or investment incentives.

The forecast is that the maximum competitive pressure will be repeated and that the quota will be filled with the highest percentage of discount possible with respect to the standard investment costs. The sector agrees that there will be a great tie again and that, first, there will be photovoltaic projects among the winners. In the previous competition, the assigned solar megawatts only accounted for 1%.

As the photovoltaic associations denounce, the mechanism sets a tiebreaker system in which the project that produces the longest hours will have priority, which favors wind power.

investing in renewable energy will increase global GDP

On this occasion, solar energy will have a place because barely 1.000 MW of wind power left capable of offering the maximum discount, which gives a margin of entry to the photovoltaic of about 2.000 MW.

The big winner of the first and second auctions was Forestalia, as we have commented in more than one article, also plans to participate in the third.

The previous 'macro auction' of renewables put 2.000 MW into play, expandable to 3.000 MW if the auction result offered competitive prices, as indicated by the Energy Ministry. In fact, allocated blocks exceeded the 2.000 megawatts discussed above.

Apart from Forestry, other companies won several blocks. For example Gamesa would have won a 206 MW block. For its part, according to industry sources Gas Natural Fenosa it has gained around 600 MW. Enel Green Power Spain -a subsidiary of Endesa-, would have been awarded 500 MW. However, IberdrolaMeanwhile, it would not have achieved any of the blocks for which it has bid.

National Court

In the background, the National Court will analyze the auction. More specifically, the Supreme Court (TS) has agreed to transfer part of the file related to the complaint filed by the photovoltaic association Unef, for favoring wind energy when it had to be a neutral auction.

The Supreme Court will study the royal decree and the ministerial order of the convocation, and the Hearing will be in charge of the ministerial resolution.

Forestry

The Forestalia Group was born in Zaragoza in 2011, the result of a long business career previous in the promotion of renewable energies, especially in energy crops and wind energy since 1997.

It currently has energy crops in Spain, France and Italy; build the largest pellet mill and splinter of the country in Erla (Zaragoza); promotes biomass electricity generation plants in Aragon, the Valencian Community and Andalusia, and various wind farms, especially in Aragon.

biomass energy from the remains of forest elements

On January 14, 2016, the Forestalia Group was the largest winner of the auction of the Ministry of Industry, Energy and Tourism for the allocation of the specific remuneration scheme to new facilities for the production of electricity from wind and biomass technology. In wind energy, the Forestalia Group was awarded 300 MW, of the 500 MW auctioned; and in biomass, it obtained 108,5 MW of biomass, out of the 200 MW auctioned.

The emergence of the Forestalia Group in the energy market will produce very positive effects: Forestalia is committed to an open, competitive, transparent market, high efficiency, lower costs and, ultimately, more benefits in prices for the consumer


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