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The renewable energy auctions and their impact on the renewable energy financing

AleaSoft, November 24, 2020. The renewable energy projects financing has many facets that must be taken into account when designing a viable project. From the technical risks of each technology to the market prices risk. The existence of renewable energy auctions may have an impact on the electricity market price that must be analysed to take it into account in the vision of the future of the electricity market on which the financial model of the project is based.

Like most business projects, the construction and operation of a park of electricity generation from a renewable energy source will require financing. The capability of a project to obtain this financing will depend on many aspects, including the viability of the project and the expected returns.

These aspects can be influenced by many factors: the fact that the project is covered by a certain remuneration regime of a renewable energy auction or simply the presence of auctions in the market, the market prices risk and the inherent technical risks. Hence the importance of the due diligence audits in the renewable energy projects financing.

Webinar on the prospects of the energy markets and the renewable energy financing

Next Thursday, November 26, the webinar “Prospects for the energy markets in Europe from 2021”, organised by AleaSoft, will be held, where all aspects that may have an impact on the financing of the renewable energy projects will be analysed.

In the webinar the results of the auctions that were held in 2016 and 2017 in Spain and how the winning projects were developed will be reviewed. The new renewable energy auctions system recently proposed by the Spanish Government will also be analysed, which already has an indicative calendar that plans to auction 1500 MW of wind energy and 1800 MW of photovoltaic energy each year until 2025, covering a large part of the renewable capacity objectives of the NECP.

During the webinar, the possible influence of these new auctions on the present and future panorama of the renewable energy in Spain will be analysed, with special attention to the impact they may have on the electricity market prices and the achievement of the objectives of the NECP.

Apart from the possible influence of the auctions, the technical risks of the renewable energy projects and how they can impact on the viability of a project will also be discussed, as well as how to mitigate or ensure them, among other functions of a Project Finance advisor.

As is usual at the AleaSoft webinars, the evolution of the energy markets in Europe in recent months and their recovery prospects from the next year 2021 will also be analysed.

On this occasion, three speakers from Vector Renewables will participate: Javier Asensio Marín, CEO of Vector Renewables, Hugo Alvarez López, Global Head of Technical Advisory, and Carlos Almodóvar Almaraz, Principal M&A and Financial Advisory, as well as Oriol Saltó i Bauzà, Manager of Data Analysis and Modelling at AleaSoft. At the analysis table after the presentations of the Spanish version of the webinar there will also be Antonio Delgado Rigal, CEO of AleaSoft.

Next AleaSoft webinar, in 2021

The second part of this webinar is scheduled for January 14. It will be the first webinar organised by AleaSoft in 2021 and will feature the participation of speakers from the consulting firm PwC Spain, to analyse the PPA contracts for large consumers, in addition to the evolution of the energy markets and the renewable energy projects financing.

Source: AleaSoft Energy Forecasting.

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