In June 2019, Portugal adopted renewable energy auctions as a procurement tool for a new utility-scale renewable projects.
Through competitive auctions, winning bidders have two modes of payment models: 1) guaranteed remuneration and 2) general remuneration.
- Guaranteed remuneration - a contracted with a fixed price, bid at a percentage discount from the reference price (EUR45/MWh in the first round) and works as a two-way Contract for Difference (CfD).
- General remuneration – contract without fixed price allows producers to sell generated electricity at the market price and bid at a EUR/MWh contribution to the National Electric System.
Under both payment modes, contracts are awarded to selected winners for a period of 15 years from the moment of commissioning and grid connection.
The minimum bid capacity is 10 MW for projects connecting to the distribution network and 50 MW connected to the transmission network. There is no project size limit, but no single bidder may acquire more than 50% of the total auctioned capacity in each round. All participants must pay a bid bond of EUR 10 000/MW.
The first auction was launched in July 2019 with results being announced in August the same year.
1st round PV:
Opened: July 2019
Winners announced: August 2019
Capacity opened: 1.4 GW of solar PV capacity offering 24 pre-selected locations for grid access.
Auction was oversubscribed. Offers were made for 10 GW capacity.
Awarded: 1.15 GW
• Guaranteed remuneration: 862 MW at a weighted average of 23.01 euros/MWh
• General remuneration: 288 MW with system contributions ranging from EUR 5.10 to EUR 26/MWh.
1st round storage:
To procure 50 MW to 100 MW of storage
2nd round PV:
To take place in 2020
To procure 700 MW of solar PV.