It was the first time in five years that Spain had arranged a green energy call for five years last week. By participating in 2,026 MW from the 3,034 MW in the auction, solar energy was clearly able to prove its ability to compete on a level playing field.
Here are the three key occurrences that happened in the event:
- 2026 from the 3,034 MW in solar power that had been sold at the second round of auction has been added to the grid.
- If the world average cost of solar dropped to 24.47 Euros per Megawatt per kWh in 2020, the price of energy would be reduced by 28%.
- Auctions often make it possible for businesses to pay back the money they owe for new plants or equipment, which is essential for corporate survival.
During this event, the general manager of the Unión Española Fotovoltaica, José Donoso, was present to provide a comment on how Solar Energy has successfully been well-represented in this auction.
With regards to what is commercially available interest in renewable energy, the solar is also ranks in the middle with the most expansive and environment-friendly of technologies, as shown by the fact that it is awarded 2/3 of the energy assets auctioned. With that, the rates help give customers a break on their energy bills.
An average price of €24.47 Euros per megawatt could and was being guaranteed at 22.9 Euros per MW, financing its subsequent purchases at this 12.9 Euros per MW for the upcoming decade. This price reflects a retail discount of 28% off of the future year in which rates, which can be assumed to be driven by the continued economic crisis in COVID, with 49% extra savings by the following.
This model is a particular example of how profitable an auction process can be when considering the number of projects created and how much buyers are willing to pay for their projects to be auctioned. It means that people of the region are also going to benefit from a much safer and much less expensive form of energy because of the recent auction’s success.