The Government estimates the investment for the auction of renewables at 2,000 million

The Ministry of Ecological Transition has already received the economic reports of the winners of the renewable energy auction last January. According to the calculations presented by the companies themselves, the award of the auction will involve an investment of more than 2,000 million and about 25,000 jobs.

According to the department of Teresa Ribera, around 13,500 jobs will correspond to wind installations and about 14,000 will be linked to photovoltaic installations. It is estimated that more than 12,000 jobs will be direct jobs, with most of them concentrated at the local and regional levels.

Regarding the mobilization of investment, it is estimated that about 1,155 million euros will be associated with photovoltaic technology and 997 million with wind. The average investment per unit of installed capacity planned is 0.67 million euros per MW, an extreme that has been questioned in recent months by the increase in prices of both solar panels and freight.

The power of the projected facilities amounts to a total of 3,034 MW, which will cover the entire award of the auction. It is estimated that its start-up will avoid the emission of about 2.6 million tons of _CO2 equivalent each year, which will mean about 80 million tons over its useful life by displacing plants that use fossil fuels.

As a result of this first auction, a decrease in the price of the electricity market is estimated to be close to 1.3 euros/MWh due to the incorporation of more renewables into the system, which will displace the thermal power plants (0.8 euros / MWh) and the energy market price of the auction, awarded at a lower price, which will reduce the average annual price by approximately 0.5 euros / MWh.

Capital Energy and Greenalia were the main winners of the call at the beginning of the year in a process in which a total of 36 companies were awarded.

Capital Energy plans to make an investment of close to 690 million euros, according to the report submitted to the Government. This investment includes the estimated average investment in capital for the manufacture, development and installation of all the equipment required in the ten Autonomous Communities analyzed: Andalusia, Aragon, Cantabria, Castilla y León, Castilla-La Mancha, Catalonia, Autonomous Community of Navarra, Valencian Community, Galicia, and Principality of Asturias.

The company considers that the estimate can be considered conservative, because as stated in the regulation of the auction, facilities can be identified for a power greater than that awarded with the potential to increase the tractor effect and the positive impacts generated.

Source: The Economist