New RES auction, for small scale wind turbine installations, in ’18

The energy ministry plans to stage a RES auction in 2018 offering capacities for small scale wind turbine installations of up to 60 MW, a neglected sub-sector, energypress sources have informed.

Though the ministry is currently focused on ensuring all rolls smoothly with wind and solar energy RES auctions already planned for July 2, it also intends to prepare an amendment for a 2010 law providing fixed tariffs for small scale wind turbines so that system absorption tariffs for this category may also be determined through auctions.

A ministerial decision will then need to be issued determining quantities and upper price limits for auctions concerning the small scale wind turbines sector. Quantities are not seen exceeding 20 MW while pundits believe auction upper-limit starting prices between 15 and 17 euros per KWh should be expected.

Another crucial detail will be the maturity level of small scale wind turbine projects to be expected from investors as a criterion for participation in auctions.

It is believed the government does not intend to offer high prices to small scale wind turbine producers for their output and, as a result, burden consumers, because this technology, when applied on a larger scale, is capable of producing lower-cost electricity.

Though details on the public’s level of interest for small scale wind turbine installations are conflicting, it is believed that over 1,000 applications have been submitted to DEDDIE/HEDNO, the Electricity Distribution Network Operator.

As for the upcoming RES auctions on July 2, they have been split into three categories. One will concern photovoltaic installations with capacities less than 1 MW. Another will offer photovoltaic installations with capacities of between 1 and 20 MW. A third auction will cater to wind energy installations between 3 and 50 MW.