Portugal’s debut solar auction triggers bidding avalanche

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
The tender is part of Portugal’s plans to push PV capacity from 572MW (2018) to 8.1GW-9.9GW (2030) (Credit: Flickr / Contando Estrelas)

Portugal’s first-ever solar auction has sparked bidding volumes nine times the tender's size, the government has said as work begins to pick winners later this summer.  

Energy state secretary João Galamba took to social media this week to hail the 10GW worth of bids tabled for the 1.4GW PV tender, with 64 projects competing for 24 auction lots.

Describing the results as “very encouraging”, Galamba commented: “The conditions for strong competition in the auction are thus created, which is excellent news for electricity consumers.”

The 64 finalists are just a selection of the 300 the government said earlier this month had submitted interest in the tender, a deluge that forced to extend the bidding deadline by one week.

Speaking to local media, Environment minister João Pedro Matos Fernandes explained the selection of winners should wrap up by 10 August.

Bids, Matos said, will work downwards from a ceiling price of €45/MWh (US$50/MWh). The tabling of some 10 bids per lot creates expectations that final prices will be much lower, the minister added.

The tender is part of Portugal’s campaign for a solar boom, with plans to push installed PV capacity from 572MW (2018) up to 1.6GW (2021) and 8.1GW-9.9GW (2030).

As state secretary Galamba explained to PV Tech in March, the solar auction will be followed by a separate 50-100MW tender for energy storage, scheduled in principle for next year.

The PV tender, Galamba said at the time, will accept bids under two modalities – with and without a fixed price – to cater to embryonic projects but also mature, PPA-successful schemes.

The two-pronged design has so far drawn a mixed reaction, with some warning that allowing bids for grid capacity as the second modality will do could result in speculation.

See here for the official website for Portugal's renewable auctions

Read Next

May 5, 2021
Europe’s solar industry has lauded the inclusion of a commitment to "re-ignite" Europe's solar manufacturing sector within the European Commission’s refreshed industrial strategy.
PV Tech Premium
May 3, 2021
Companies are purchasing solar, wind, and other forms of renewable energy more than ever before. The power purchase agreement (PPA) market in Europe has grown to a cumulative capacity of over 12GW, with a record 4GW signed in 2020. Corporate climate commitments are opening doors for investment in renewable energy, and continued price declines are convincing companies to sign new contracts. Is the European market ready to fulfil its potential? By Dr. Mercè Labordena, senior policy advisor at SolarPower Europe, and Milena Koot, communications advisor at SolarPower Europe
April 28, 2021
Renewable energy group BayWa r.e. has opened what it claims is its largest PV warehouse in Europe yet in a bid to expand its distribution network in the continent.
April 14, 2021
While recent solar auctions in Spain and Portugal have made headlines with low prices and high levels of participation, the power purchase agreement market will be key to helping both countries reach their 2030 solar deployment targets, it was suggested during a panel discussion.
April 13, 2021
European solar investors are coming to terms with smaller returns, however banks, governments and grid operators could do more to help alleviate risk and ease investor concerns.
April 8, 2021
Iberdrola has formed a strategic alliance with insurance company Mapfre that will initially invest in 230MW of clean energy projects in Spain, including 130MW of solar PV.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021
Solar Media Events
August 24, 2021