Yagsen Stressed That Renewable Energy Auctions Provide Certainty For The Future And Avoid Speculation

2021-01-28   |   by CusiGO

“It’s a successful attempt, it’s a success, and it’s convinced us that it will continue to work in the future,” said Sara aagesen mu nianoz, Secretary of state for energy. We are optimistic about the continuous plan for the next five years. The second auction is scheduled to take place this year, but the Secretary of state does not rule out that it may take place before the fall, but it will depend on the commitments that the investments just granted in the coming months must fulfill.

The auction allocated 3034 megawatts (MW) between photovoltaic power generation (2036 MW) and renewable energy (998 MW), with 84 investors bidding 9700 MW (more than three times the auction price) in more than 1500 bids. In order to achieve the goal of the national energy and climate integrated plan (pneiec) for 2021-2030, up to 19000 megawatts of electricity will be auctioned, which provides for the installation of 60 gigawatts (GW) within 10 years. This and continuous allocation auction of the renewable energy economic plan (REER) aims to provide a stable return framework, attract investment and promote economic activities of the whole renewable energy value chain in the case of the recovery of the health crisis. At the same time, let consumers directly benefit from these technologies to reduce the cost of power generation.

In this regard, yagsen pointed out that the price signal appeared for the first time, which is the key to the development of auction. “They provide clarity, stability and avoid the speculation that has happened in the past few years,” he pointed out. The Secretary acknowledged that she was uncertain about the new renewable energy economic system until the auction ended and the results were known, stressing that it had proven to allow different participants and more available participants than traditional participants. “It’s crucial because we are always criticized,” he added.

In this regard, it emphasizes the importance of “providing a price reference for the purchasing power parity (PPP) market, because it allows both wind power and photovoltaic power to have ready-made prices. It didn’t exist before because the auction market is so chaotic that it’s not allowed to do that. ” It also stressed that the auction system chosen “allows price reference to be transferred to every consumer, household and industry, small and medium enterprises and large companies”, which will be reflected in the light received as soon as the facility is put into operation. Investors have an obligation to prepare for photovoltaic power generation by February 2023 and wind power generation by February 2024, although they believe developers will be “faster”.

Mr. aagesen particularly stressed the certainty that the tender price would be passed on to consumers. The highest price is 28 euro / MW, with an average of 25,31 euro for wind energy and 24,47 euro for photovoltaic power generation, which is 43% less than the last offer. According to the Ministry of ecological transformation, this will mean saving nearly 5 Euro per year between household bills and 1.5%. 2% of industries (~ 35000 euro / year), plus the cumulative impact of other auctions.

Although there is a free allocation of 1000 MW at the auction, in fact, all this is for photovoltaic power generation. According to agson, this is because its price is more competitive, which does not mean that wind power has reached its peak, “because it still has a long way to go.”. Offshore wind power, in particular, is strategically planned for the first quarter of this year. “If you look at the future, everything needs to be developed and there is a lot of potential,” yagson said.

The secretary was satisfied with the competitiveness of the selected technology, but added, “it would be wise to conduct an in-depth analysis of the first auction and see what happens when you see the qualifications of all the selected technologies within two months.” Over the next six months, the project must be clearly located, and he hopes that at the upcoming auction, the flexibility of the system will allow other technologies such as thermoelectricity, biomass, biofuels to enter…

Another thing that yagson emphasized is the traction it will have on the economy and employment. It is estimated that the first auction will involve 2.1 billion euros in investment and at least 27000 direct jobs. “We know that Spain is competitive across the entire value chain of renewable technologies. We ask that the renewable technologies participating in the auction submit a strategic plan within two months. ”

The Ministry has set out to address its links and contacts with the royal decree and the recent circulars issued by the National Women’s Commission, and is determined to address these issues in the coming months. “We intend to send this signal to achieve our goals, to establish a stable framework and to provide the necessary funding, “To give consumers a better price, but to convey the message that they are reputable projects, participants should be diversified, not just lifelong participants, other participants can enter, they can enter the energy world,” remata said.