Endesa, Iberdrola, Naturgy and Repsol line up for the big renewables auction.

Endesa, Iberdrola, Naturgy and Repsol, the four largest energy companies in Spain, are finalising plans to participate in the renewable energy licence auction organised by the Ministry of Ecological Transition, headed by Teresa Ribera.

The bidding will take place at the end of this month. Specifically on the 26th. But this same week there is a key date. Tomorrow all those interested must start to present documentation to be able to appear in the bidding. In this auction, the Government reactivates the granting of renewable energy licences. The awarding system for this auction, unlike those held between 2015 and 2017, will be made to the highest bidder in terms of price. The company that undertakes to offer the cheapest electricity price will win the tender.

This month’s auction is the first of the auctions that the government is going to organise between now and 2025 to grant licences for the massive deployment of renewables, under the new ecological transition plan. Any company can also deploy renewables on its own, without having to obtain this licence. The difference is that if it gets permission from the Government, it is guaranteed to charge for the years of the concession the price set in the awarding, and not to be dependent on the volatility of the market.

For the first time, the auction will bring together all the major energy groups in Spain, as well as new independent entrants, if only to test the market. How far they are prepared to squeeze the bids is another matter. The aim of this auction is to award 3,000 megawatts (MW). At least 1,000 MW will be photovoltaic and another 1,000 wind. The remaining power is to be auctioned without any technological restrictions.

From 19 to 27

The deadline for submission of documentation was opened on 15 December. All the groups jealously guard their strategy. Not only about prices. Also about whether they will present themselves or not. From tomorrow they will have to start taking their pictures. Tomorrow at 13.00 the deadline for the delivery of the documentation for the pre-qualification is closed. On the 21st at 13:00 the deadline for the correction of errors in the documentation will be closed. On the 22nd there will be an auction test with the prequalified bidders. And on the 25th there will be a test of access to the auction system and electronic signature. On the 26th, the auction will be held between 9:00 and 11:00 hours. On the 27th the winners will be confirmed after the complaint period.

Source: Expansión.