Spain to Auction 500 MW of Renewable Energy Capacity in April

Out of 500 MW, concentrated solar power with battery storage will account for 200 MW


Spain’s Ministry for the Ecological Transition and the Demographic Challenge (MITECO) has announced that it will hold its next renewable energy auction for 500 MW capacity on April 6, 2022.

Of the total 500 MW capacity, 200 MW is allocated to concentrated solar power (CSP) with six hours of battery storage capacity, 140 MW to distributed solar photovoltaic (PV) projects, 140 MW for biomass projects, and 20 MW for other technologies.

The 140 MW of distributed solar projects must be less than or equal to 5 MW of capacity each. Priority will be given to projects which provide local employment.

The successful bidders must commission the solar projects within two years from the date of the letter of award.

The ministry has allocated 100 MW for large-scale biomass projects, while the remaining 40 MW is reserved for projects under 20 MW capacity.

In its announcement, the ministry said CSP, biomass, and biogas would receive regulatory support for 20 years. Distributed solar PV projects and other renewable technologies would receive support for 12 years.

According to the country’s proposed Integrated National Energy and Climate Plan (PNIEC) 2021-2030, Spain targets to install 60 GW of renewable energy capacity by the end of the decade. The capacity is expected to account for 74% of overall power generation by 2030 and would reduce one in three tons of greenhouse gases currently emitted.

In October 2021, Spain auctioned 866 MW of solar projects out of the total tendered capacity of 3,123 MW. Wind projects accounted for a significant chunk of the awarded capacity. Repsol Renovables quoted the lowest bid of €0.028 (~$0.033)/kWh for an onshore wind capacity of 49 MW.

Earlier in 2021, Spain allocated 3.034 GW of renewable energy capacity in its first renewable energy auction since 2017. In all, 2.034 GW of solar photovoltaic capacity was awarded.

The Institute for the Diversification and Saving of Energy (IDAE) would be allocating €181 million (~$214 million) to support renewable energy projects in seven autonomous communities of Spain. The allocation is part of a €316 million (~$375 million) package that MITECO will infuse into the domestic renewable energy sector.