Banks warn investors of added costs in new RES auction terms

Though keen to finance renewable energy projects in the sector’s new era, starting this coming Monday with RES auctions, banking sources, in comments offered to energypress, have warned prospective investors to pay particular attention to new additional costs and charges included in the terms of the forthcoming auctions, noting these could impact financial results and the sustainability of projects.

For quite some time now, authorities have made clear the costs included in the new RES auction terms. Monday’s session will offer RES investors capacities for three sub-categories – small-scale photovoltaic installations of less than one MW; larger-scale PV installations measuring between one and 20 MW; and wind energy installations of between 3 and 50 MW.

“Sustainability is the first criterion investors will need to consider when deciding on the levels of their auction bids, otherwise they could end up trapped with an offer that, on the one hand, may guarantee success at the auctions and push forward their projects but, on the other, burden them with an unprofitable selling price for their energy output and lead to unfavorable developments in the long term,” one banking official explained.

According to calculations made by banking officials contacted by energypress, the various charges for producers included in the new RES auctions terms could exceed 15 percent of bids submitted in the descending-price auctions.

For example, the various charges in the wind-energy category, whose auction starting price has been set at 90 euros per MWh, have been estimated to total between 8 and 13.8 euros per MWh.