L R AS Published on Saturday 26 November 2022 - n° 426 - Categories:purchase/sale contracts

Auction in Spain fails on many grounds

The auction that took place on 22 November in Spain ended with no photovoltaic plants being awarded. Only 45 MW

of wind power have been awarded.

The trade association said the auctions were not very interesting because companies have an interest in selling their production on the free market.

https://www.pv-tech.org/spains-latest-auction-round-ends-with-no-winning-bids-for-solar/

PV Tech of 24 November 2022

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The failure to award a single MW of solar at the Spanish auction has prompted a reaction from the trade union UNEF: "It shows that the sector is in a strong and competitive position and prefers to be in the market."

Alternatives such as power purchase agreements (PPAs) or the use of the spot market are more attractive with the current high prices. Developers are following other avenues to build new solar PV plants, as the appetite to invest in renewable energy is still strong in Spain.

Aurora Energy Research suggests other reasons: the cost of capital is higher in a rising interest rate environment. This leads to bids above the maximum reserve price (€45/MWh) set by MITECO. Another reason for not bidding is the supply chain disruptions affecting developers in Spain; bottlenecks are occurring and the lead time for obtaining components has become longer. It is not possible to say that construction could be completed by November 2024

https://www.pv-tech.org/it-shows-a-maturity-of-the-market-spains-solar-sector-reacts-to-latest-auction-results/

PV Tech of 25 November 2022

Editor's note: It is not until the tender failed that the problems faced by the various developers are finally mentioned.

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