Undersubscription plagues again Greece’s solar auctioning push

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Image credit: Heroix / Flickr

Demand for Greece’s solar auction contracts has again fallen short of the government’s expectations, with latest bidding only reaching half of what Athens had made available.

Figures released by energy regulator RAE on Wednesday show solar players tabled a collective 148.64MW in bids for the latest industry-only auction, targeting 500kW-20MW projects.

The bidding volumes from 44 solar projects, recorded by RAE between 7 October and 4 November, are roughly half of the 287.11MW pot of contracts the government had offered.

By contrast, a simultaneous, separate 225.45MW tender for wind projects was majorly oversubscribed, hauling in 491MW worth of bids from 16 project applicants.

Both online auctions are expected to pick winners in mid-December. Based on rules unveiled in September, PV bidding will start at ceiling prices of €66.02/MWh (around US$73/MWh).

The new tariff cap is meant to reflect the pricing benchmarks of this year’s earlier PV-only tender, which began with ceiling prices of €69.26/MWh but ended with average tariffs of €62.77/MWh.

Tech-neutral auctions prove surer route to solar growth

Greece’s auctioning efforts are meant to help push installed PV capacity from around 2.6GW (2018) to 6.9GW (2030). The target would make PV the country’s top clean energy source by that year.

Since its launch last year, the PV tendering campaign has yielded mixed results, with technology-neutral auctions proving more successful than some of their industry-specific counterparts.

Held in April 2019, the country’s first solar-plus-wind auction was oversubscribed, drawing 637.78MW bids from both technologies for an initial 600MW of capacity on offer.

Solar stole the show at the technology-neutral auction, which ended up granting contracts of 437.78MW all in all. PV players scooped up six of the seven winning contracts.

The ensuing PV-only auction of 1 July triggered a more muted response. RAE put forward 300MW in solar contracts but actual bids fell to 200.26MW, of which 142.883MW was later awarded.

On the ground, foreign players are starting to make moves for Greek solar assets. In May, German investor DWH became a shareholder of local firm Maximus Terra, signaling interest for the latter’s 200MW PV pipeline.

The prospects and challenges of solar's new era in Europe and beyond will take centre stage at Solar Media's Solar Finance & Investment Europe (London, 5-6 February) and Large Scale Solar Europe 2020 (Lisbon, on 31 March-1 April 2020).

Read Next

September 14, 2021
Polish renewables developer PAD-RES is to be acquired by a joint venture established by real estate investor Kajima and private equity firm Griffin Real Estate.
September 8, 2021
Sonnedix, Opdenergy and Canadian Solar were among the five successful bidders in Chile’s latest power auction, which took place yesterday (7 September) and will see the country support 2GW of renewables and storage installations.
September 3, 2021
Uzbekistan has started the request for qualification stage for a solar tender that will support three projects totalling up to 500MW, including one paired with a battery energy storage system.
PV Tech Premium
September 1, 2021
Spain’s renewables auction next month is set to receive high levels of interest from solar bidders, according to industry observers, as the country’s government seeks to support the swift deployment of new capacity following a summer beset by record-breaking electricity prices.
September 1, 2021
The Australian state of Victoria has launched its second Victorian Renewable Energy Target (VRET) auction for 600MW of energy projects, which will feature strengthened network requirements to ensure projects can be easily connected to Australia’s grid
August 26, 2021
India is on track to install an additional 4,580MW of solar capacity in the second half of 2021 after seeing deployment marginally increase in Q2, according to Bridge to India.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
Solar Media Events
December 1, 2021