Infra-Buildings, solar power

The Portuguese solar auction 2020: depicting the results

Over recent weeks, Portugal has been appearing in news headlines across the world due to the solar auction that took place on 24/25 August. But what is all the fuss about?

By producing the most competitive solar standalone projects, the Portuguese auction broke all previous records. According to AFRY’s analysis, the commissioning of these awarded projects could translate into savings of c. €28m/year for Portuguese consumers.

This new tender design improves the integration of storage and renewables into the electricity system, and thereby improves its flexibility and security of supply.  As a result, an innovative and cost effective solution has been created.

AFRY Management Consulting undertaken an independent analysis of the auction and the official published results. We present our findings in this note as we address the following questions:

  • How did Contract-for-Differences (CfDs) go as low as €1.2/MWh for a 15-year period?
  • What are the rights and duties of the awarded projects?
  • What are the main risks associated with the projects?
  • What savings will the Portuguese system see as a result?

Our research supports the conclusion reached by Enel Green Power and the Portuguese Government, that hybrid solutions are the best way to support the integration of renewables and thus increase the flexibility of the system.

Get in touch with our experts

Antonio de Juan Fernandez

Director, AFRY Management Consulting

Ignacio Cobo

Senior Consultant, AFRY Management Consulting