On March 27, 2020, the Secretary of State for Energy announced that a solar capacity auction will be held during the course of 2020.
Despite the constraints caused by the current pandemic scenario, it was announced that the aforementioned auction will be held as soon as the health crisis is over and there is some stabilization in the markets.
Regarding the previous auction, the establishment of a licensing task force, under the coordination of the Ministry of the Environment and Climate Action, was highlighted, to ensure that the various licensing entities involved in the projects awarded in 2019 process the respective procedures as quickly as possible. In this way it is avoided that promoters are prevented from meeting the deadlines with which they have committed to the Directorate General of Geology and Energy (DGEG) for reasons beyond their control.
1. FRAMEWORK
The 2020 auction will be similar to the previous auction, without prejudice to specific adjustments motivated by the contributions of several operators.
It was announced that the auction will have as object 700 MW/MVA of solar capacity, with the lots being entirely located in the regions of Alentejo and Algarve.
The minimum capacity bid per lot will be 10 MW, for points in AT/MT, and 50MW for points in MAT, and companies in the same group cannot exceed 50% of the capacity. The procedure shall be processed via electronic platform.
2. REMUNERATION SCHEME
The remuneration schemes that operators can access are two: (i) guaranteed remuneration and (ii) general remuneration.
However, in the option of general remuneration, operators can choose two sub models depending on whether or not their plants are equipped with a storage system.
3. PROCEDURE
The procedure will be divided into three parts: qualification, auction and award.
4. POST-AWARD PHASE
Operators that have seen their tender awarded are subject to compliance with a strict timetable, failure to comply with which will result in the loss of the deposit provided after award.
Commercial and Corporate Law department | (Portugal)
Belzuz Advogados SLP
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