Spain's latest power auction highlighted the falling cost of solar power and triggered the country’s first hybrid solar-wind projects.
Solar developers claimed all of the 1 GW of capacity available in a technology-neutral pot, on top of 1 GW set aside for solar projects. Solar capacity was allocated at an average of 25.31 euros/MWh ($30.09/MWh) and the lowest price was 14.89 euros/MWh, more than five euros below the lowest wind price.
Spain introduced a contract for difference (CFD) mechanism in the auction, which boosted investor confidence. The auction also allowed hybrid renewable energy projects for the first time, following a new Royal decree implemented in December.
EDP Renewables (EDPR) will install 98 MW of new solar capacity allocated in the auction at four of its existing wind sites, the Portuguese utility told Reuters Events.
“We are going to turn them into the first fully commercial hybrid wind and solar facilities in Spain," the company said.
The projects will "increase production and profitability" at the sites and EDPR plans a wave of similar projects, targeting 400 MW of hybrid capacity in Spain in 2021-2025, it said.
Boosting assets
There is currently a huge interest in hybrid projects in Spain, industry experts told Reuters Events. All medium-to-large operators are considering solar-wind hybrids as a way to optimize existing installations, one source said.
Spain had 21.7 GW of installed wind capacity in 2020 and 6.1 GW of solar. Under its latest National Energy and Climate Plan (NECP), Spain aims to build 28 GW of new wind capacity and around 30 GW of PV by 2030, through annual auctions held over the next five years.
EDPR's first hybrid projects will consist of a 40.9 MW solar plant at the 49.5 MW Lomillas wind farm and a 23.6 MW solar system at the 25.5 MW Castillo Garcimunoz facility, both in Cuenca, eastern Spain. The group will also install a 13.8 MW PV facility at the 14.5 MW Cruz de Hierro wind farm in Avila, central Spain and 13.2 MW of solar at the 14.5 MW Villacastín plant in nearby Segovia. EDPR secured five solar CFDs in the auction at prices between 18.99 euros/MWh and 27.01 euros/MWh, government documents show.
https://www.reutersevents.com/renewables/solar-pv/edpr-build-first-hybrid-solar-wind-plants-spain