In the case of the upcoming renewable energy auction, the delivery schedules have been pushed forward to such an extent that of the total of 3,000 MW awarded, 600 MW will need to be operational within eight months, i.e. before 30 June 2022, so that the downward impact on electricity prices in the daily auctions can be felt before next summer arrives. The remaining photovoltaic power to be awarded (including the amount awarded to small producers) must be connected to the grid by 30 April 2023, while wind power plants will have a further 12 months.
Regarding the prices of the electricity produced by these new plants, we know that at the last renewable energy auction held on 26 January of this year, more than 3,000 MW of wind and photovoltaic power were awarded on the basis of roughly €25 per MW/h. A fixed price (stable remuneration at 95%) that will be maintained over a period of 10 to 15 years, and which is significantly lower than the daily prices seen in the wholesale electricity market: in April they hit €80 per MW/h, three times more than the €25 mark reported in January. And now we are seeing prices north of €200.
The government awards its contracts through a reverse auction procedure, in which the lowest or cheapest bidders win. These bids appear to be aimed at medium-sized operators, given that the auction sets 200 MW as the maximum on which each operator can bid. It is also in the interests of these medium-sized operators to have predictable revenue forecasts. Large utilities, on the other hand, are strong enough financially to undertake large projects and sell their energy on the much more unpredictable open market.