SEA-TITAN project related news

The Government wants to launch a new renewables auction in 2019 despite the interruption of the elections

The General Commitments of last April 28 provoked not only the dissolution of the Cortes and the election of a new government, but also the paralysis of all the work that was being carried out to date to be able to announce a renewable auction in that same year. 2019 , as confirmed by sources from the IDAE (Institute for Diversification and Energy Saving)  to this newspaper.


Although they can not assure if it will give time to convene this year, these same sources have indicated that the IDAE is still working on it, and that they are adjusting it to the text that the Government published last February in the National Energy and Climate Plan (PNIEC) , that is, a model that can respond to the needs of the decarbonisation process of the country’s economy.

The power to be auctioned, therefore, according to this framework of energy and climate, would be at least 3,000 MW and, in addition, it would allow the development of new remuneration frameworks for renewable generation based on the long-term recognition of a fixed price for the energy generated , that is to say, that it is rewarded according to the energy produced and not as in the three previous auctions of 2015 and 2016 where a marginalist formula was applied that was fixed in the investment cost. “Unless a change in market conditions requires otherwise, in the calls the product to be auctioned will be the electric power to be generated and the variable on which it will be offered will be the price of said energy”, says the document presented in Brussels.

It also includes the possibility of auctioning both riveting projects (with power less than or equal to the existing installation) and repowering (involving an increase in power).

Future auctions will also be carried out through competitive concurrency procedures, in which different generation technologies can be distinguished. This is intended to achieve a total installed power in the electricity sector of 157 GW in the year 2030 , of which 50 GW will be wind power; 37 GW solar photovoltaic; 27 GW combined gas cycles; 16 GW hydraulic; 8 GW pumping; 7 GW thermoelectric solar; and 3 GW nuclear, as well as minor amounts of other technologies.

An auction very different from the previous ones

The new auction will be very different from the three auctions called by the previous minister Álvaro Nadal a little less than three years ago. The new government, with more than possible Teresa Ribera again at the head of the Ministry of Ecological Transition, would continue with her idea of ​​introducing some modifications that make these bids are internationally comparable to send clear signals to the market , as the minister said in functions on numerous occasions.

In other countries of our environment, according to a report of the photovoltaic employer UNEF , “the amounts to be auctioned are granted based on the energy produced and not the installed power, for greater certainty in achieving the objectives set by the EU “, And” the administrative procedures of the auctions are as simple as possible so that any company or individual can bid “. In addition, “to guarantee greater competition in the sector and reduce a possible concentration of large companies in it, a reserve of 20% of the energy to be auctioned is established for plants with an output of less than 10MW.”

The auctions of many European countries and also of Latin America coincide in several points in the design of the auctions, “the technology of the projects, the final price of the energy produced and the quotas to be awarded”. Surely it will take into account what is done outside and works for the future auction in Spain.

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