The fourth auction of renewables, with 3,300 MW for wind and photovoltaic, will be held on November 22

The Government starts the procedures to update the PNIEC to the new objectives of the EU and the current context

MADRID, 1 Ago. (EUROPA PRESS) -

The Government will hold a new renewable energy auction on November 22, the fourth under the new scheme, in which a total of 3,300 megawatts (MW) of wind and photovoltaic energy will be put into play, with the aim of accelerating the electrification process of the economy, reduce gas consumption, lower electricity prices and advance in the achievement of climate objectives, reported the Ministry for the Ecological Transition and the Demographic Challenge.

Specifically, this new renewable auction tender is structured around two power quotas, one of 1,800 MW for photovoltaic and another of 1,500 MW for wind.

The Government has already launched three allocation auctions for the Renewable Energy Economic Regime (REER). Two, which were held in January and October 2021, have focused on photovoltaic and wind technologies, assigning a total of 2,902 MW of photovoltaic and 3,256 MW of wind, at prices much lower than those registered in the wholesale electricity market. .

The third auction, already called, offers capacity for 520 MW of thermoelectric solar, biomass, distributed photovoltaic and other technologies, and will be held on October 25.

In this new auction for November, the expansion and hybridization of existing facilities will be accepted and, if any of the quotas are not filled, a transfer may take place so that facilities of the other technology are assigned.

The cabinet led by Teresa Ribera indicated that, thanks to the auction, gas savings of 11,000 gigawatt hours (GWh) per year are estimated, 2.9% of total gas consumption in Spain in 2021, and a reduction in emissions of greenhouse gas of about 2.7 million tons of carbon dioxide (CO2) equivalent. The forecast contemplates that the necessary investment to execute the awarded power will be around 2,900 million.

In the auctions to obtain the REER, developers bid for the price they are willing to charge for the energy generated by their plants --12 years in the case of wind and photovoltaic power--, with some exposure to the market price.

Facilities that have management capacity will have a market exposure of 25%, while otherwise they will have a 5% exposure.

As in the other auctions, the winning companies will have to present a strategic plan with estimates of the impact on local employment and the industrial value chain. In addition, access to future REER auctions will be prevented for the winning facilities, to discourage them from renouncing the regime granted in this auction in order to go to another subsequent auction.

On the other hand, the Ministry has also initiated the process of prior public consultation of the project to update the National Integrated Energy and Climate Plan (PNIEC), the main medium-term energy planning instrument to achieve the objective of climate neutrality set by the EU. for before 2050, with the intention that it incorporates the novelties at the national and European level.

The EU has jointly increased its ambition, establishing an intermediate emission reduction target of 55% in 2030. In addition, the 'Fit for 55' legislative package and the REPower EU Plan propose 45% in renewables and increase their targets in improvement of energy efficiency and reduction of energy consumption.

The Ministry stated that this process of updating the PNIEC "will make it possible to achieve the new EU objectives and will take into account the current context, in particular the impact of the measures and objectives included in the PRTR, which allocates more than 40% of the funds to the impetus for the ecological transition".