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Spain awards below-market clean energy capacity in oversubscribed auction, Energy News, ET EnergyWorld

MADRID: Spain has chosen 32 bidders out of 84 candidates to provide more than 3 gigawatts (GW) of renewable energy in projects that will generate more than 2 billion euros in investments, its energy ministry announced on Tuesday and the Environment.

At the country’s first clean energy auction since 2017, local electricity group Naturgy was chosen to supply 235 megawatts (MW), a spokesperson for the company said.

Madrid-based newcomer Capital Energy has been given 620 MW of wind capacity, a company source said, seizing the lion’s share of the gigawatt earmarked for wind.

Italian renewable energy company Falck has landed 40 MW of solar capacity, a source with knowledge of the matter said.

The winning ability at auction provides a developer with a fixed price for the electricity produced, protecting it from market volatility. Spain has chosen an auction payment system, in which each company is paid at the price it offers.

Investor interest in the country’s under-exploited solar and more established wind sector has grown as the government of socialist Prime Minister Pedro Sanchez set ambitious targets as part of an international bid to decarbonize economies and stop climate change.

The weighted average price of the winning projects was 24.47 euros per MWh for solar and 25.31 euros for wind, 43% lower than this week’s estimates for 2023, the ministry said, adding that this would have direct repercussions on household and industrial electricity bills. consumers.

A total of 84 bidders submitted projects totaling more than three times the capacity offered. A gigawatt was reserved for solar photovoltaic and a gigawatt was open to any technology.

Naturgy’s allocation consists of 38 MW of wind power and 197 MW of solar PV capacity, the spokesperson said.

In its version of the national energy and climate plan required of all European Union countries, Spain aims to install 60 GW of capacity by 2030, reaching 74% of electricity production from from renewable sources and thus reducing greenhouse gas emissions by a third compared to current levels. (Reporting by Isla Binnie, editing by Victoria Waldersee and Paul Simao)