Following the success of last week's auction, the Spanish Government will hold another to award up to 3,000 MW of new renewable energy before the summer to feed into Spain's energy system.
Spain's Prime Minister, Mariano Rajoy, announced the new auction during the inauguration of a conference to discuss plans to prepare a draft bill on Climate Change and Energy Transition.
Bids in last week's auction more than tripled the power awarded and successful bidders all offered the maximum permitted discount. What this means is that the successful projects will not receive an additional premium on top of the income that they receive from the market, in a context of average reference prices.
Renewable technologies have therefore shown that they are competitive at current market prices.
Given the auction's success, there it a special interest in establishing a new installed power quota entitled to the specific remuneration, which will be awarded via auctions further to the one held on 17 May and a draft royal decree text has been approved in this regard.
The new quota will focus on wind and photovoltaic technologies, as it was those technologies that have shown in the first auction a greater ability to compete with conventional technologies in the market, not only from the perspective of a price, but also due to the high volume of power offered.
This Royal Decree establishes a power quota for a new auction to award the specific remuneration to new energy generation facilities using photovoltaic and wind technologies connected to Spain's peninsular power system, with the aim of making progress towards meeting the binding targets established in Directive 2009/28/EC, of the European Parliament and Council, of 23 April 2009, on the promotion of the use of energy from renewable sources.
This text has been sent to the National Markets and Competition Commission to issue a report for that body to put it to public consultation via the Electricity Consultative Council, in accordance with article 7 of Law 3/2013, of 4 June, on the creation of the National Markets and Competition Commission.
Arguments may be submitted within seven business days from the day following the date on which it is published on the portal of the Ministry of Energy, Tourism and Digital Agenda, i.e., from 26 May 2017 to 5 June 2017.