Portugal Solar Auction Results in Record Low Bid of €14.8/MWh
The capacity auctioned is more than twice the current solar capacity of Portugal
Portugal’s recent solar auction resulted in a record low bid of €14.76 (~$16.4)/MWh, Joao Glamba, the secretary of state for energy told news agency Reuters. In the 1,150 MW auction, 13 bidders won projects among all the competing entities.
This was the largest auction of any energy launched in Portugal. The capacity is equivalent to more than twice the current installed capacity of solar energy in Portugal.
“This first auction in Portugal was a success. There were brutal discounts and, in addition to getting the lowest prices in Europe, we hit new world lows. This auction shows that the energy transition, to which the government is committed, not only can strongly accelerate investment and the penetration of renewables in Portugal, but it can be done at very low prices,” Galamba commented.
According to Portuguese newspaper, Jornal De Negocios, Spain’s Iberdrola bagged seven of the 24 licenses, and France’s Akuo won 370 MW in the process. Based on the locations where these projects will be installed, the auctions were held where the winners would be those offering the highest discounts to the bidding tariff of €45 (~₹ 3,443)/ MWh.
Recently, EDF Renewables and Masdar financed the Dumat Al Jandal project in wind energy generation, in Saudi Arabia. This is a utility-scale project. The Renewable Energy Project Development Office of the Saudi Ministry of Energy, Industry, and Mineral awarded the $500 million (~₹34,505 million) wind farm. This took place in January after the bidders were summoned through the tendering process in August 2017.
Moreover, this July, Total Eren and EDF Renewables sealed 25-year long term power purchase agreements for four solar energy projects. The total installed capacity is 716 MW. The projects are situated in north Indian states of Rajasthan and Uttar Pradesh. The projects have been garnered by Eden Renewables India, which is a joint venture of EDF Renewables in India.
Image credit: ESA/D. O'Donnell [CC BY-SA 3.0-igo]
Ramya Ranganath is an Associate Editor and Writer for Mercom Communications India. Before joining Mercom, Ramya worked as a Senior Editor at a digital media supply chain solutions company. Throughout her career, she has developed end-to-end content for various companies in a wide range of domains, including renewables. Ramya holds a bachelor’s degree in Mechanical Engineering from M.S. Ramaiah Institute of Technology and is passionate about environmental issues and permaculture.