Spanish utility Endesa has purchased 410GWh of solar energy in its latest solar auction for Spain and Portugal, which comes to the equivalent of 681MW capacity.
The auction closed with a price of EUR39.6/MWh (US$43.82).
Last July, Endesa announced plans to encourage quarterly solar auctions for the Iberian peninsula to be organised and supervised by the independent Iberian Energy Derivatives Exchange (OMIP). The auctions would equate to the equivalent of 500GWh each depending on the solar production capable at that time of year.
Endesa said the auction method was reducing the earnings volatility for solar technology and the capacity purchased this week had confirmed the “positive market acceptance” of this mechanism.
An Endesa statement also claimed: “Until the solar auctions began, the wholesale forward market had not offered the financial risk management tools in a transparent, reliable and competitive environment, required to meet the specific profile of solar production.
“This auction has also enabled the creation of a specific index for solar products (SPEL Solar), the first in Europe which also serves as a reference to analyse the progress and behaviour of this technology in the financial markets."
The next solar auction will be held in June.
Last September, Endesa purchased 333GWh of power in its Iberian solar energy auction, which the company claimed was equivalent to purchasing 1.2GW of capacity.