Key technical, economic and legal aspects of new renewable energy auctions

On February 9, G-advisory and Garrigues analyzed the key technical, economic and legal aspects of the new renewable capacity auctions that the Ministry of Energy, Tourism and Digital Agenda (MINETAD) intends to hold in the first half of 2017.

After some welcoming remarks, Antonio Baena, the managing partner of G advisory, introduced the main factors that have led to renewable capacity allocation auctions becoming the new regulatory framework for renewables, both in Spain and worldwide.

Luis González, counsel at Garrigues, broke down the most important legal aspects included in the proposal of Ministerial Order that regulates the procedure for allocation of the specific remuneration system in the call for new electricity generation facilities based on renewable energy sources, highlighting the main rights and obligations of the awardees.

Beatriz Trocolí, a principal at G-advisory, analyzed in detail the technical and economic parameters of the proposed Order and the auction award procedure, examining the sensitivity of project profitability based on various factors, such as the discount to be offered in the auction, the electricity market price or the initial investment.