Results annd lessons learnt: auctions for renewable energy support in Spain
Spain has set ambitious renewable energy objectives through its National Energy and Climate Plan (NECP, or “PNIEC” in Spanish) 2021 – 2030, which establishes, among other things, the objective to cover 74% of total electricity demand through renewable sources by 2030, and 100% by 2050. In order to achieve this objective, the NECP considers the use of renewable energy auctions as a key tool, in addition to other measures and mechanisms.
Since 2018, Factor Ideas for Change has collaborated in the European project “Auctions for Renewable Energy Support II” (AURES II), which investigates options for the design of renewable energy auctions European Union Member States. The project uses an objective and multi-methodological approach that, among other aspects, includes the completion of theoretical analyses, country and auction case studies, surveys and empirical and quantitative analyses, as well as econometric analysis and quantitative modelling.
In the latest case study on auctions for renewable energy support in Spain, Factor collaborated with the Spanish National Research Council (CSIC), to assess the auction held in January 2021. The report sets out the analytical findings on the auction design and rules, the results of the auction, and its implications for the renewable energy sector in the country, in order to consider the best way to progress the auction mechanism used, its structure and rules.
In 2020 Spain’s new auction system was approved, and on 26 January 2021 the first auction was held under the new rules, characterized by having a less complex design compared to the preceding system, as well as being aligned with international best practices in the use of renewable energy auctions. The report also notes that the main players of the Spanish power and renewable energy sector have praised and welcomed the simplicity and effectiveness of this new system.
Readers can access the full report via the following link: http://aures2project.eu/wp-content/uploads/2021/10/AURES_II_case_study_Spain.pdf
Source: Global Factor