As auctions closed in Portugal for newly planned solar projects, renewable energy prices hit a record low. Authorities revealed that successful bidding strategies have driven down costs to $0.01316/ kWh for a 700 MW solar energy auction.
A deeper dive into the nature of the contracts tells interesting stories for this new record. To attract quality renewable energy investments, the 700MWs was divided into 12, 10-109MW project categories.
Interested bidders could opt for a range of solar projects. Including those without storage, with battery storage, concentrated solar power setups, and a combination of CSP and solar PV.
Moreover, along with 15-year power purchase agreements (PPAs), the auction guaranteed bidders a number of rights. These include land and grid connections – two challenging elements in the Portuguese power market.
Strengthening Portugal’s Solar Project Landscape
The auction under question is Portugal’s second successful attempt at attracting renewable energy investments. As a country that suffered immensely because of the 2008 global crisis, alleviating itself from energy poverty has been a fundamental goal. One that it has tried to achieve with every auction.
Consequently, major developments have contributed to this goal. For one, the infrastructural agreement between Spain, France, and Portugal will play a huge role in opening doors to renewable energy projects. Therefore, it will not only help increase electricity production capacity; it will also strengthen the nation’s existing grid.
Hence, leveraging plummeting solar project costs globally, Portugal is adding green energy to the mix. Thus, taking advantage of the country’s sunny outlook – easily the highest irradiation rates in all of Europe.