Portugal’s floating solar energy auction sets world record negative price

Procedure electrician Joao Mendes of the Alto Rabagao Floating Solar Photovoltaic Park pilot challenge, exits a ability assortment tower at the Alto Rabagao Dam, in Montalegre, Portugal, September 22, 2021. Picture taken September 22, 2021. REUTERS/Violeta Santos Moura/File Image

LISBON, April 6 (Reuters) – Portugal’s very first auction of rights to construct and operate floating photo voltaic vegetation on dam reservoirs set a entire world document very low rate for long run output in what the governing administration called a win for power consumers.

The govt assigned legal rights to install floating panels with capacity to change sunlight into 183 megawatts truly worth of electricity, a large chunk of which went to indigenous electricity firm EDP Renovaveis (EDPR) (EDPR.LS), a device of the country’s major utility EDP (EDP.LS). EDPR’s winning bid was a negative cost, that means it will pay the Portuguese electrical procedure 4.13 euros ($4.50) for every single megawatt hour it generates about 15 yrs, the atmosphere ministry stated.

A source with information of EDPR’s provide mentioned the organization made available a negative value on the photo voltaic strength mainly because the task is a hybrid that also includes wind and electrical power storage, which must be rewarding.

“In this way, EDP ensures the profitability of the hybrid job. As it will have a single place of relationship to the grid, it will also have charge synergies concerning solar and wind,” the supply reported, including that possible integrated battery storage would additional make improvements to profitability.

EDPR will build floating panels with capacity to crank out 70 MW at the southern Alqueva dam, the major artificial lake in Western Europe.

This rate compares with levels of all around 250 euros for each MWh on Tuesday in the Iberian wholesale current market MIBEL. Through 2021, the typical MIBEL selling price was 112 euros.

EDPR gained also an more 14 MW of solar around-potential and 70 MW of hybrid wind capability. The reference cost for the future sale of vitality in the auction was 41.03 euros.

Russia’s invasion of Ukraine in February sent charges for gasoline applied in energy crops to historic peaks, prompting governments and companies to speed up their guess on renewable resources these types of as wind and solar.

“The floating photo voltaic auction proved to be a good results, with Portugal breaking a new record by location the least expensive power price tag in the globe. There will be gains for energy buyers truly worth 114 million euros about 15 yrs,” the surroundings ministry explained in a statement.

Spanish utility Endesa (ELE.MC) won the right to put in a 42-MW photo voltaic venture on the northern Alto do Rabagao dam, in which it ideas to make investments 115 million euros.

Iberian renewable organization Finerge was awarded a few heaps, each and every in distinct dams, to set up a complete of 38 MW of solar capacity, it explained.

Portugal held two auctions in 2019 and 2020 for on-land photo voltaic parks and both equally set globe data for the most affordable price tag of long term output.

($1 = .9165 euros)

Reporting by Sergio Goncalves Modifying by Lisa Shumaker

Our Criteria: The Thomson Reuters Trust Ideas.