Onshore wind won a total of 2258MW in the Spanish government’s 3300MW technology-neutral renewable energy auction.
Wind prices averaged €30.18/MWh, which are among the cheapest strike prices in Europe and only slightly above the price in January’s auction in Spain, said WindEurope.
The auction was slightly undersubscribed with a number of companies deciding not to compete due to government plans to apply a new charge linked to the rise in gas prices that would have effectively clawed back revenue of certain wind farms.
The measure intended to tackle the high energy prices led to uncertainty among developers and investors, WindEurope stated, adding that the government has decided retract the bulk of this measure.
“This is good news. Spain needs a stable regulatory framework to reach its 74% renewable electricity target by 2030,” the association stated.
“As it stands, any installation that can prove it has any type of PPA or financial hedging not indexed to the spot price will be exempted from the clawback. This will also apply to new PPAs.
“This will provide more security to investors, including on merchant projects than the previous measures,” said WindEurope.
WindEurope chief policy officer Pierre Tardieu said: “Retracting the clawback measures is a step in the right direction.
“Without a good regulatory framework that gives investors certainty, it will not be possible for Spain to reach its climate targets cost effectively.
“The latest auction also proves once again that renewables are the way to go. They lower electricity prices and their expansion reduces Spain’s need for fossil fuels.”