The Government awards 146 MW of biomass and 31 MW of locally distributed photovoltaics

The Ministry for Ecological Transition and Demographic Challenge (Miteco) awarded yesterday 146 MW of Biomass and 31 MW of local photovoltaic of a local nature in the third auction for the allocation of the Economic Regime of Renewable Energies (Reer) , whose resolution can be consulted here . Its materialization will mobilize more than 400 million eur and generate about 4,400 jobs . The auction has been held in an economic scenario marked by the war in Ukraine that has conditioned the offers of the participants and the results.

MITECO was auctioning a power of 520 MW for the granting of the REER to solar thermoelectric technology installations, biomass, distributed solar photovoltaic and other renewable technologies . The current situation, with high inflation, rising interest rates and price tensions in raw materials and equipment, has caused participants to submit offers above the maximum price allowed by the auction rules .

MITECO has awarded 146 MW of biomass at a weighted average price of €93.09/MWh, with a maximum of €108.19/MWh and a minimum of €72.38/MWh . The prices are higher than those of other renewables, but biomass is a manageable technology that can produce when needed and that facilitates the operation of the electrical system due to its synchronous nature. In addition, it has an important added value of generating employment, mainly in rural environments, and helps to manage and valorize forestry and agricultural waste.

MITECO has also awarded 31 MW to local solar photovoltaic installations, with power equal to or less than 5 MW, at a price of €53.88/MWh, with a maximum of €62.5/MWh and a minimum of 44 €.98/MWh . This is a volume of power five times greater than that awarded in the previous auction, which confirms the good evolution of a typology of installation halfway between self-consumption and centralized generation in which citizen participation is decisive.

Impact on the Spanish economy
The auction will mobilize economic resources of around 416 million, associated with the manufacturing of equipment and the construction of the winning facilities, and the creation of around 4,400 jobs, including direct, indirect and induced employment. The successful bidders will have to present a strategic plan with their impact estimates on local employment and the industrial value chain, which will be published on the MITECO website.

The electrical production of the winning facilities in the auction will displace generation of fossil origin , mainly gas combined cycles, allowing the saving of 1.7 TWh of gas per year – 0.45% of the country's consumption in 2021 – and avoiding the emission of about 0.35 million tons of CO2 equivalent.

Considering the previous REER auctions, held on January 26 and October 19, 2021, MITECO has allocated 3,256 MW of wind, 2,933 MW of photovoltaic and 146 MW of biomass . On November 22, the fourth REER auction will be held, for wind and photovoltaic.

The National Integrated Energy and Climate Plan 2021-2030 (PNIEC) foresees the installation of about 60 GW of renewable power, with the objective of producing 74% of all the electricity in the country. REER auctions are held according to a calendar that establishes a minimum number of calls until 2026.