The Portuguese government plans to hold the country's first large-scale solar power capacity auction in June or July 2019. 1,750 MW will be made available to investors in a bold move to increase the future domestic renewable power generation. This amount is much larger than the current solar installed capacity in the country, which stood at 822 MW in 2017. The terms of the upcoming auction are expected to be unveiled either in March or April 2019 as the government is currently discussing the issue with potential investors before making the official announcement.
The auction is likely to enable interested bidders to install large-scale solar projects with capacities standing up to 400 MW. The government will design the process so that small producers will be granted a guaranteed fixed tariff, while larger projects with better access to financing would be awarded a premium tariff. The government also forecasts that the prices to be set in the auction will be lower than market prices.
The announcement is part of a plan to reach a total installed solar capacity ranging between 8,100 MW and 9,900 MW by 2030. According to the government, the Algarve and north Alentejo regions belong to the most promising areas in terms of solar potential.