Undersubscription plagues again Greece’s solar auctioning push

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
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

April 9, 2021
LONGi Solar will supply its high-efficiency modules to two projects in Malaysia totalling 190MW that were awarded in the third round of country’s large-scale solar tender programme.
March 31, 2021
Norwegian company Ocean Sun has signed an agreement to provide its floating solar technology for utility-scale floating PV projects in Greece and Cyprus.
March 25, 2021
Thin-film laser systems equipment supplier LPKF Laser & Electronics suffered from delays in receiving new expected orders from two long-stand customers last year.
March 22, 2021
Malaysia’s installed solar capacity is expected to increase fourfold by 2030, driven by a successful tender policy and improved financing incentives, according to a new report from Fitch Solutions.
March 19, 2021
The Federal Energy Regulatory Commission (FERC) has announced key decisions this week providing clarity and to solar developers within the US, and signalling state support further down the line.
February 25, 2021
The Global Wind Energy Council (GWEC) and Global Solar Council (GSC) have called on Mexican lawmakers to prevent changes to the country’s Electricity Act, Ley de la Industria Electrica (LIE), which pose what they call “an unequivocal threat" to private investment in clean energy.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 13, 2021
Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET