Spain: AEE believes outcome of the 500 MW auction does not reflect the reality of the sector

The Spanish Wind Energy Association (AEE), which represents 90% of Spanish wind energy sector, believes that the outcome of the auction held on Friday 14th, the first in Spain ever, is not significant because it does not reflect the reality of the sector. The fact that the auction was isolated (there is no calendar for further calls) and small-sized (only 500 MW) in a context where the sector has been paralyzed for several years due to the green moratorium has caused an unexpected result.

Before the moratorium of 2012, there were around 10,000 wind power megawatts in Spain that had been awarded through the years in different regional competitions but were never installed due to the forced paralysis of the sector. Among these projects, some are in special circumstances (even with investments already made), something that has shown in the interest of the sector in attending the auction and in the lower bids. Nevertheless, these circumstances cannot be extrapolated to most companies’ greenfield portfolios or to already operating wind farms, which were installed when technology costs were higher and with a bigger investment.

In order to install the 6,400 wind power megawatts necessary to comply with Spain’s 2020 Energy Planning and meet the EU’s 2020 goals in terms of energy consumption, AEE believes that it is necessary to call for a new auction of the remaining 5,900 MW before the Summer. This would be ideal because it would ensure enough time for the project’s installation. The Government should also ensure a stable and predictable regulation for the future. Otherwise, it will be almost impossible to meet the goals set by the EU of 20% of final energy consumption from renewable sources by 2020, which are binding.