Solar auction success in Spain with record low prices

  • Solar achieves 2,036 MW of the 3,034 MW auctioned 
  • The average price of solar was 24.47 €/MWh, representing a discount of 28% on the market price of electricity in 2020
  • The result of the auction facilitates a stable remuneration for companies to access financing for their installations

Last week, Spain held its first renewable energy auction call since 2017. Solar energy demonstrated its competitiveness by achieving 2,036 MW of the 3,034 MW auctioned.

José Donoso, Unión Española Fotovoltaica, General Manager commented: “Solar energy has demonstrated its competitiveness in this auction. The enormous interest in solar energy projects, the cheapest on the market, and with the lowest environmental impact, is evident, in the fact that solar is awarded two thirds of the auctioned energy. As a result, these prices will benefit consumers’ electricity bills.”

The average price of solar was €24.47/MWh, a guaranteed and sustainable remuneration for the next 12 years, which will finance the installations from the auction. This price represents a discount of 28% on the electricity market price in 2020, a year with particularly low prices due to COVID, and a 49% discount on 2019 prices.

Donoso added: “The success of the chosen auction model, shows it is a successful formula both in terms of the volume of projects and the price captured for consumers. The success of the renewable energy auction means the success of solar energy, and of the citizens, who will now have cleaner and cheaper energy.”

Photo credit: Unión Española Fotovoltaica

Many thanks to José Donoso & Luisa Cabello for their Market Intelligence and contributions to this piece. 

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