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Spain plans to auction off 3.1 GW of renewable capacity by end-2020

12 Nov 2020

Spain plans to auction off at least 3.1 GW of renewable capacity by the end of 2020, including 1,000 MW of wind, 1,000 MW of solar photovoltaic (PV) power, and 80 MW of biomass-fired capacity; the remaining capacity will be left for other renewable technologies. The country intends to hold auctions at least once a year, offering nearly 3.5 GW of renewable capacity in annual auctions (1,500 MW of wind, 1,800 MW of solar PV, 100 MW of concentrated solar power (CSP), and 60 MW of biomass-fired capacity), with the goal of accumulating at least 19.4 GW across all technologies in 2020-2025. In 2030, renewables are expected to account for 70% of the electricity mix and 35% of the energy mix.

Earlier in November 2020, the Spanish government approved a decree establishing a new regulatory framework for renewable energy auctions, the Economic Renewable Energy Regime (Régimen Económico de Energías Renovables, REER). The text creates a “pay as bid” system in which bids will be submitted sealed, and the winners will receive different prices based on their offers. The new scheme allows hybridisation between technologies, the expansion and modification of existing plants and will be compatible with electricity storage.

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