Onshore wind prices plummeted to new lows in Spain’s latest tender round.
The cheapest onshore wind farm was awarded at €20/MWh, while bids ranged between €20/MWh and €28.89/MWh with a weighted average of €25.31/MWh in the country’s latest auction. These prices are well below the €33.96/MWh national wholesale electricity market price for the full year 2020.
Spain’s energy ministry awarded 12-year contracts to seven developers for around 1GW of onshore wind capacity.
However, no wind power developer was successful in another 1GW, technology-neutral pot. Solar PV developers took the entire allocation in the technology-neutral round, in addition to a solar-only pot.
All projects have to be built by April 2024.
WindEurope CEO Giles Dickson celebrated the low prices and added: “The European wind industry continues to reduce costs through innovation, scale and learning effects.
“And major credit is due also to the Spanish government here for using contracts for Difference (CfDs) as their new auction model. CfD auctions deliver the lowest prices for renewables because they minimise the financing costs.”
Spain's wind power sector welcomed the results, but warned more capacity would need to be awarded if the country is to meet its renewbale energy expansion targets.