This week the Spanish Ministry for the Ecological Transition sent to the Parliament a draft of the of Climate Change and Energy Transition Law proposed.
One of the most expected points of the Law is the announcement of new energy auctions for the development of new renewable energy projects. The Spanish Government´s aim is to boost the development of renewable energy as well as to provide the necessary support to the Spanish renewables sector.
The new auctions will be articulated under a pay as bid mechanism so the award parameters will be based mainly as a function of the energy produced and price offered by investors, not the installed power, hence prioritizing the performance of the facilities vs capacity. This time the Spanish renewables sector recommendations to follow other European countries energy auction schemes have been dully taken into consideration.
Since last two auctions in 2017 the Spanish renewables sector has grown significantly. Last year was a great year for the renewables sector with a total of c. 6,500 MW of renewable generation getting connection setting a national record up to 110 GW. The Ministry expects to launch the new auctions before the end of 2020. No doubt this will contribute significantly to keep the Spanish renewables sector tendency despite the current economic circumstances.