The Spanish Council of Ministers has approved a royal decree that establishes a new auction to allocate what is known as "specific remuneration" for renewable energy facilities with an aggregate power of up to 3,000MW. The Royal Decree was published in Spain's official journal, the Boletín Oficial del Estado (BOE) on Saturday, and entered into force on the following day
As with the previous renewable energy auction in May, the new auction will be neutral from a technological standpoint; wind energy and photovoltaic facilities will take part competing against each other and the subsidy will ultimately be awarded to the facilities that are most cost efficient.
The new auction does not change the essence of the auction held in May:
- To be eligible, facilities must be new.
- They must be located in peninsular Spain.
- They must enter into operation before 31 December 2019.
The auction focuses on wind and photovoltaic energy with the greatest potential for growth.
No need for additional premiums
Bids submitted at the auction in May exceeded the allocated power by a factor of three and the awardee projects all offered the maximum discount permitted. This means that the awardee projects will be carried out without a need for additional subsidies on top of the income they obtain from the market in connection with reference prices.
The new auction will allow Spain to make significant progress towards achieving its renewable energy targets established by the EU for 2020. As a result, Spain will reach 19.5% renewable energy over total energy consumption, only 0.5% short of the EU target of 20%.