Spain returns to wind energy with record low prices

18.05.2017

In Spain's latest renewable energy auction nearly all of the 3 GW available was awarded to wind energy. The auction resulted in contracts for €43/MWh, the maximum discount rate allowed under the Spanish tendering system. This is the lowest level ever awarded in an onshore wind tender in Europe
 
“The tender results show how onshore wind is today the cheapest option for new power generation. Some may think wind energy no longer needs subsidies.  But it was the fact the auction offered a guaranteed minimum income that attracted investors and ensured there were enough bids to deliver the low price.  And this is the point - it's not subsidies but revenue stabilisation mechanisms, addressing the risk of wholesale price volatility, that will be critical to the deployment of onshore wind across Europe at competitive costs.  By offering revenue stability, auctions play a crucial role in enabling investors to finance a project - they're key to making projects happen” said Giles Dickson, CEO of WindEurope.

The industry welcomes the results of the Spanish auction as a positive development. It comes after a 3-year market standstill triggered by retroactive cuts to the Spanish feed-in tariff in 2013. The paralysis has put at risk the prospect of Spain complying with its 2020 EU renewable energy target.  Spain now needs to deploy additional megawatts if it is to meet its EU commitments.

Dickson added: “Today’s auction is an important step towards restoring confidence in the Spanish wind market.  But there's still some way to go.  Spain should drop the practice of changing the “reasonable return” of projects every six years - it creates instability for both existing and new projects.  And the industry looks forward to a clear schedule for future tenders.  Visibility on the tender pipeline and deployment volumes is key for investment decisions. Ultimately, well designed tenders and a clear pipeline help reap the economic benefits the wind industry brings the Spanish economy - 22,000 jobs and billions of export revenue."

WindEurope

Similar Entries

Using Bolt-Check to monitor clamp load (pict.: R&D A/S)

The Bolt-Check tool reduces preventative maintenance time, resulting in service cost reductions while maximizing uptime; Reduced health and safety costs.

Excelsior Energy Capital (“Excelsior”), a renewable energy infrastructure fund focused on long-term investments in wind and solar power plants in North America, and Unico Solar Investors (“Unico Solar”), a wholly owned subsidiary of Unico Investment Group LLC that develops, owns and operates commercial and community solar installations, announced the completion of a 300-kilowatt solar energy system at Central Station, a new four-story, 125,000-square-foot office building. Developed by SteelWave and owned by Principal Real Estate Investors, the building is located at 285 Sobrante Way in Sunnyvale, California.

Under the motto "Think Ahead", the meteocontrol team will be presenting innovative solutions for the energy transition at Intersolar Europe at its booth B3.574. pict.: meteocontrol GmbH

Under the motto "Think Ahead", meteocontrol GmbH will be demonstrating at its booth B3.574 at Intersolar Europe how more efficient operational management can save time, increase yields and thus drive forward the energy transition.

Webinar "Operation of Wind Power Plants in Cold Climate 2021" (pict. VGB)

For the first time the results of the VGB Research Project “Comparison of blade-based ice detection systems” will be presented at the webinar
"Operation of Wind Power Plants in Cold Climate".