Spain to auction 500MW wind power capacity

By Editor


Spain is to auction 500 megawatts of wind power at a yet-to-be declared date. It is the first such measure since the country approved its energy reform.

The government is to allow both new capacity and renewal of existing projects in continental Spain or the islands.

The ministry for industries of Spain has issued a draft royal decree detailing plans for the auction.

Both new capacity and repowering project bidders can participate in the auction, according to a statement.

Spanish wind energy association (AEE) has a word of caution for prospective bidders, though.

Profitability of renewable energy projects could be affected beyond 2019 with impending economic change.

Last June, Spain passed a retroactive law that removed support for renewable energy projects, including existing capacity.

The cuts, which were part of far-reaching austerity measures in the country, brought the then-thriving wind industry to a standstill.

It reflected in the fact that Spain added only 28MW of onshore wind capacity out of its 22.9GW total capacity in 2014. Most of the total came from projects installed in the pre-2008 stimulus.

That the Spanish government was looking at 500MW of wind power projects was an indication of the demand for such projects.

Besides wind power, Spain also has plans to auction 200 MW of biomass power.

While the wind power farms are proposed to be installed within five years at the cost of 21 million euros, the biomass projects are expected to require 130 million euros a year to build.

The costs will be included in the tariff once the projects commence operations.

Ajith Kumar S

[email protected]

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