Madrid, 22 June 2017: Topics discussed included the indisputable advantages of the auction system in the context of Spain’s tender process. Though it is a complex system, its competitiveness and efficiency is unquestionable; 3.7 GW have already been awarded and an additional 3 GW will be awarded at the auction set to take place in July. A total of 6.7 GW will be reached by 2019.
The Secretaries of State for Energy and Commerce, Daniel Navia and Maria Luisa Poncela, who participated in the opening of the conference, highlighted the important internationalization and industrialization efforts taking place within the wind sector with the aim of advancing and creating job opportunities within the Spanish economy. Currently, 10% of the world’s installed capacity belongs to Spanish companies and 12% of wind turbines are produced in factories in Spain.
João Paulo Costeira said that for EDPR, “Auctions are an excellent system. We’re now very clear on what we look for in an auction, whether it’s the legal security it implies, the predictability of the associated earnings or our own profitability objectives.”
Electric auctions place Spain very close to its 2020 goal of 20% renewables. According to Navia, “As a result of auctions, the renewables market has grown more consolidated in a way that’s financially appealing to the consumer. It’s now probably the most efficient method for meeting established objectives.”
This doesn’t mean entirely smooth sailing; in the words of João Paulo Costeira, “Spain needs the megawatts being bid upon to meet renewable energy commitments by 2020. But meeting these objectives also requires grid connection rights, and the mechanisms are overly complex.”
In short, the sector is committed to auctions, but to those that have been well designed and defined within a framework of regulatory stability.