MITECO launches tender for 500 MW renewable energy projects in Spain

The Ministry for the Ecological Transition and the Demographic Challenge (MITECO) has submitted to public information the resolution calling the third auction to grant the Renewable Energy Economic Regime (REER) which seeks to develop renewable energy projects with a combined capacity of 500 MW. 

The auction establishes a reserve of 200 MW for thermoelectric solar plants with six hours of storage, which allows their hybridization with photovoltaic, biomass, or biogas; two other reserves for biomass, one of 100 MW for large installations and another of 40 MW for plants smaller than 20 MW; another 20 MW for other types of renewable technologies.

In the event that the reserves for thermoelectric solar power plants (200 MW), biomass (140 MW), and other renewable technologies (20 MW) are not awarded in full, the excess power may be assigned to other offers of those same technologies. The awarded photovoltaic installations will have two years to build from the award, while the rest of the more complex technologies will have four.

In the auctions to obtain the REER, developers bid for the price they are willing to charge for the energy they generate at their plants, with some exposure to the market price. On this occasion, solar thermoelectric, biomass, and biogas installations will receive the REER for 20 years and will have a market exposure of 15%, as they are manageable; photovoltaic and the rest of renewables will receive the REER for 12 years and will have lower exposure to the market, of 5%. 

The auction will happen on April 6, 2022. More information about this tender can be found here.