government auction a new batch of renewable energy. The energy companies can bid for a total of 3,300 megawatts of wind and photovoltaic power, as outlined in the tender published in August, which will take place tomorrow, Tuesday, November 22nd. The companies involved must make an assessment the profitability of the projects at a time when electricity bills have skyrocketed and Europe continues to face the energy crisis.
This is the fourth renewable energy auction for power generation since the first was held in January 2021. The companies that are awarded the contract for wind and photovoltaic packages benefit from this a fixed price to charge energy for years to come. Due to the high electricity prices, the competition could have less demand than on previous occasions.
The participating companies can submit their bids for 1,800 megawatts of photovoltaics and 1,500 megawatts of wind power tomorrow, Tuesday.
Last month, the Ministry of Ecological Transition and Demographic Challenge auctioned electricity for biomass, decentralized photovoltaic and solar thermal. Nevertheless, this last slot was left empty due to the minimum price set by the agency.
In the event that this occurs tomorrow and the entire bid is not awarded, the remaining megawatts will be taken over can be replaced by other emerging technologies. This means that there may be changes depending on the demand for wind or photovoltaic energy. The auction implies gas savings of 11,000 gigawatt hours (GWh) per year media2.9% of total gas consumption in Spain in 2021. This would also mean a reduction in greenhouse gas emissions of around 2.7 million tonnes of carbon dioxide equivalent.
The investment required to implement the assigned capacity is approx 2,900 million euros. In these auctions, developers bid for the price they are willing to charge for 12 years of energy generated by their plants.