Updated on Tuesday, October 19, 2021 – 18:32
The electric companies allege that the RDL of measures to contain the rise in electricity and the regulatory uncertainty generated has forced them to change their strategy.
Sánchez Galn, with Boris Johnson.
Endesa and Iberdrola have stood up to the Government in the great auction of renewables held this Tuesday to award a regulated remuneration to 3,300 megawatts of ‘green’ power. The result has been that the Ministry of Ecological Transition has failed to meet the auctioned energy target, remaining 95% of the goal compared to last January’s bid in which the offer tripled.
Endesa justifies its decision by the effects of the measures included in the Royal Decree Law designed by Transicin Ecolgica. Specifically, due to the obligation that it imposes on the large electricity groups in the country to auction part of their electricity production among large industrial clients and independent trading companies in order to provide greater “competitive pressure” to the market.
Company sources argue that this loss of production leads them to have to buy electricity in the wholesale market to supply its millionaire customer base, the largest in the country, so the group is committed to focusing its strategy on promoting its own generation. .
The rudeness of Endesa, advanced by this newspaper, was joined in an even louder way by Iberdrola. Electric sources justify their decision in the current context of “regulatory uncertainty” after the legislative change approved by the Government. What is striking is that his refusal to participate in this mechanism designed by the Executive to attract investment to Spain coincided with the announcement of a Record investment plan of € 7.1 billion in the United Kingdom for the development of the East Anglia Hub offshore wind complex, the project that concentrates the largest volume of the company’s investment in the world and one of its largest in the field of offshore wind.
The news was distributed by the company along with some photos of its president, Ignacio Snchez-Galn, talking in a relaxed and friendly position with the prime minister Boris johnson, just the day he presented his ambitious plan to reduce the country’s polluting emissions in the coming decades. Smiles in London, tension in Madrid.
The auction did not include the participation of Acciona, another of the large Spanish renewable operators, although in this case its decision has been marked by its strategy of diversifying its generation sources between those with regulated remuneration and others that sell energy directly in the market.
The one that has gone to the auction called by the Government has been Naturgy. The Catalan electricity company has acquired a total of 221 megawatts of photovoltaic power, according to company sources, and it stands out from the pulse maintained by its two main rivals with Moncloa.
The companies that go to the auction and are successful agree to offer a stipulated amount of energy to the market during a specific period of time. This electricity will be remunerated at the price that is committed in the auction.
A new group sweeps
The great winner of the day has been Capital Energy, which has been imposed in the auction as it was awarded 1,550 megawatts. It is a little less than half the energy involved. Practically all of them correspond to megawatts wind and assume the entire amount to which the group aspired.
The average award price was 30 euros per megawatt hour, more than five euros above the average price obtained in the auction in January of this year. This is an increase of 20%, which the vice president Teresa Ribera go “reasonable” given the sharp rise in the cost of capital goods and raw materials.
The person in charge of the country’s energy policy believes that the result of the bid is positive despite not having achieved the objective. “It has arisen at a particularly delicate moment, especially complex and turbulent, in the European energy panorama and 95% of the supply has been covered despite the difficulties”, he highlighted. To stay with something good, the Government concludes by ensuring that the 30 euros per megawatt hour committed on average with the successful bidders are much lower than the 200 currently set by the market. The question is whether, in such a volatile and uncertain scenario in the sector, they will continue to be so in the future. Just one piece of information: the average price of electricity in October 2020 was 36 euros per megawatt hour.
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