Portugal

In March alone, renewable energies covered 103.6% of the country’s total power consumption, a performance which was mainly driven by wind and hydropower. As a result, the average power price on the daily spot market dropped year-on-year, from €43.94/MWh to €39.75/MWh.

The new entity will have to provide an analysis on the current processes for the approval of utility-scale solar PV projects, and propose new mechanisms for making more room for solar in the local congested grid.

The French corporate and investment bank acquired the project from Hyperion Renewables via its unit for responsible investment solutions, Mirova. The project has already secured a 10-year PPA from local power distributor, Axpo Ibéria.

The power purchase agreement (PPA) relates to large-scale PV projects planned to be operational by 2020. The buyer of the power generated by the solar facilities is Spain’s power provider, Audax. 495 MW of the capacity will be located in Spain, while the remaining 165 MW will be installed in Portugal.

The new provisions include a draw mechanism for the project selection. The results of the first draw will be announced in mid-March.

Overall, the grid improvement is expected to enable at least 800 MW of new solar PV plants to come online in the south of the country.

The projects will be developed without direct public incentives and will sell power to the spot market – an option still considered unviable by the local renewable energy sector – or through private PPAs. Meanwhile, local power provider, Axpo Iberia has agreed to buy electricity from a 28 MW solar facility planned in southern Portugal under a 10-year PPA.

Acting on the behalf of its investors, the German asset manager has come into possession of four solar PV projects in Portugal, the names of which have not been disclosed. Meanwhile, Germany’s HSH Nordbank has successfully penetrated the Portuguese market with the refinancing of two solar plants.

The leading party of Portugal’s left-wing government coalition, the Socialist Party, said that the extension of the CESE tax to renewables would have hindered the further development of clean energy across the country.

The CESE tax, so far paid only by conventional energy companies, will be extended to existing RE power plants under the special tariff regime.