Portugal to tender 700 MW solar capacity in August

May 7, 2020 | Montel

(Montel) Portugal will tender 700 MW in solar capacity in August, after the auction was delayed in March due to the coronavirus outbreak, energy secretary Joao Galamba confirmed.

Starting June 8, companies will be able to present their applications in the qualification phase, which will last seven weeks. The auction will be held on August 24-25.

“The period [qualification phase] is long because the auction will have a new and very innovative scheme, and we wanted to give time for investors to get ready and be able to participate with more mature projects,” said Galamba on Wednesday.

The auction will for the first time include storage capacity, in addition to the fixed-price scheme over a 15-year period that includes a power purchase agreement with the government and fee payments per MWh generated.

The Portuguese government will hold two solar auctions every year with around 700 MW each, starting in 2020, to meet the country’s renewable goals for 2030. The aims to increase solar capacity from the current 1.9 GW to 8.1-9.9 GW in the next 10 years.

Yet, the Covid-19 pandemic forced the government to delay this year’s first auction, and the energy ministry said in March that it was not yet possible to anticipate if necessary conditions would be met to launch a second auction this year.

Last summer, it allocated 1.3 GW in the first auction, at an average price of EUR 20/MWh, including a lot awarded at the lowest price in the world so far for a 150 MW solar installation. 

Reporting by:
Belén Belmonte
09:52, Thursday, 7 May 2020