Yesterday one of the most anticipated data in the electricity sector was known: that of megawatts renewable awarded in the two large auctions held in the months of May and July 2017 that managed to meet the deadline for its construction and registration set in the requirements of the auctions, on December 31, 2019. Failure to comply with said deadline meant losing the guarantees provided for participate in the process (60,000 euros MW) and the land price that was guaranteed to the winning investors.
According to data provided yesterday by Red Eléctrica de España (REE), last year 6,456 MW of renewable capacity was installed in Spain compared to 330 MW installed in 2018 (of this capacity, 194 MW corresponded to the projects of the Canary wind plan) , which was an undisputed historical record in a year.
Of the total registered green power, 5,689 MW corresponded to the megawatts of the two auctions carried out by the PP Government in 2017, while the rest, 767 MW, went from free projects to market. By technology, the high degree of compliance of the photovoltaic against the puncture of the wind stands out.
In the May auction of that year, whose conditions prevented photovoltaic energy from competing (it was a single auction for two different technologies), 3,000 MW of wind were awarded. Already in July, of the 5,037 MW in liza, the photovoltaic was winning, with 3,909 MW compared to the 1,128 MW that took the wind.
From the REE data, it appears that, as of December 31, solar projects with a capacity of 3,975 MW had materialized, of which 3,728 MW corresponded to those awarded in the subsequent July auction. Therefore, only 181 MW have failed.
Worst stop has been the wind. Thus, of the 2,319 MW that were installed last year, 1,976 MW were projects built under the two aforementioned auctions, so 2,150 MW of those awarded then (including the lots) were out of combat.
Loss of guarantees
The first consequence of the breach is the loss of guarantees for investors who have not reached the goal, up to 140 million euros that the Treasury will stay. This is a maximum amount since the loss of the guarantee was linked to the breach of several milestones in time, such as administrative authorizations or the location of land. Therefore, only the investor who has not met any of the milestones set has lost all the guarantee.
The main winners of the wind megawatts in the first auction were the Aragonese Forestalia (1,200 MW); Naturgy (600 MW); Endesa (540 MW); Gamesa (200 MW) and Norvento (128 MW). In July, Alfanar (Capital Energy), with 720 MW and four other smaller packages.
In Endesa they confirm that they have fulfilled the term “surplus”, while Naturgy It has not arrived due to the delay at the last moment in the start-up of the project “for meteorological reasons”. Forestry, company that stepped very hard in the auctions, not only in 2017 but in the first one, held in 2016, in which it achieved 500 MW, has left a good part of the awarded power along the way. In fact, it has only built about 650 MW (including 50 MW of biomass). Companies can, however, continue with their projects, sell them outside auctions or go to those held in the future.
The Ministry for Ecological Transition left in the drawer a regulatory project to regulate future auctions with a mechanism different from that approved by the Government of Rajoy. According to the proposal, the investment will no longer be auctioned (the award will not be made to the one who builds the plants with the least possible investment), but the price of generation (to whom it produces at the best price). A claim by companies in the sector with which not everyone seems to agree.
There are two reasons that would explain the progress of the solar against wind: in addition to requiring greater investments, these facilities have limited locations to wind areas, compared to the first that has easier installation.
The big winner of photovoltaic capacity was ACS (through Cobra), which achieved 1,550 MW in the July auction. Of these, only 300 MW were their own and the rest of a portfolio of small investor projects to which he provided the guarantees and which he later acquired until he took over the entire package.
The company that presides over Florentino Pérez has not taken a sigh to resell already registered facilities (900 MW) along with other projects in the portfolio in Spain (another 2,100 MW) to Galp. An operation for 2,200 million that will bring a profit of 330 million, in which several Chinese groups have participated. Business sources point to the strong malaise of one of them, Shanghai Energy, with which ACS negotiated until the last minute and was considered the winner.
The new development of renewables, which has only just begun, will be a great challenge for the operator of the electrical system and carrier, REE, for the task of integrating unstable technologies, which require support. According to a note sent yesterday by the company, this has promoted the integration of the mix of renewables with operational measures and actions in more than 30 substations.
The increase in installed power by 5.6% in 2019 has meant a historical record (with a total of 110,000 MW) due to the increase in renewables by 13%. This has favored, according to REE, that green production in Spain has reached 97,826 GWh, 37.5% of the total.
All this will facilitate compliance with the National Integrated Energy and Climate Plan (PNIEC), which plans to reduce C02 emissions by 23% in 2030. Precisely, this is the improved objective contained in the draft of the plan that the Ministry has updated to the Ecological Transition.
A year ago, the department directed by Teresa Ribera sent her project to Brussels, which gave her her blessings, which gave an idea of the ambitious goals of Spain. After a public hearing process, the ministry reviewed the text, which it has again submitted to a final consultation.