The first auction of renewables since 2017 will take place very soon. January 26th, 2021 is the key date.
In total, Spain’s Ministry for the Ecological Transition and the Demographic Challenge (MITECO) will tender 1GW of wind (onshore), 1GW of solar PV and a further 1GW technologically neutral (an overall maximum of 3.18GW contingent on the tender mechanics).
As expected, the key auction award variable will be energy price (zero euros bids would be allowed) and an unknown maximum price would be applicable. A maximum of 50% of the 3GW capacity might be awarded to one single company. The auction compensation mechanism term will be 12 years for solar PV, wind (onshore and offshore), thermal and hydro technologies. For biomass, biogas and bioliquids technologies the term will last up to 15 years.
The tender requirements set that participants should prepare and submit a strategic plan including estimates in relation to the projects´ contribution to jobs creation, industrial value chain, as well as whole life-cycle plans for the projects and contribution to the carbon footprint reduction.
The auction will be launched on December 15th and interested developers are allowed to submit their bids right until January 26th, 2021.
Over the next years, the Spanish Government plans to launch tenders for 20GW of renewable power until 2025 (mainly wind 8.5GW and solar PV 10GW) in order to achieve the 60GW target set out in the Spanish Plan for 2021-2030 (PNIEC).