Spain’s latest renewable energy auction has resulted in the lowest ever award of capacity to onshore wind.
Only 45.5MW across two projects secured the nod from a 1.5GW pot.
The government said this was due to high inflation, rising interest rates and other issues.
The auction control system has prevented the short-term economic situation from “translating into award prices above structural levels during the 12-year duration of the REER for wind and photovoltaics”, added the Ministry for the Ecological Transition and the Demographic Challenge.
The 45.5MW has been distributed between two successful bidders at a weighted average price of €42.78/MWh, with a maximum of €45.12/MWh and a minimum of €39.88/MWh, it stated.
One of the successful bidders is Forestalia, which secured 25.5MW of the onshore wind capacity.
The latest award is the fifth for Forestalia, which secured capacity in 2016, 2017 and 2021 auctions.
Considering the previous REER auctions, held on January 26 and October 19 2021, and on October 25 2022, MITECO has allocated 3302MW of wind, 2933MW of photovoltaic and 146MW of biomass for the next one, which takes into account the volume of power planned with REER that has not been allocated so far.