Endesa Purchases 410 Gwh In The Third Solar Energy Auction
The operation closed at a price of 39,6 €/MWh
• The auction, which was organised and supervised by OMIP (the Iberian Energy Derivatives Exchange), covered 410 GWh, equivalent to an installed capacity
• The next solar energy auction promoted by Endesa will be held in June.
Recently Endesa purchased 410 GWh of solar energy in the solar auction market for the next quarter, equivalent to an installed capacity of 681 MW of photovoltaic panels.The volume obtained and once again confirmed the positive market acceptance of financial products that reduce the earnings volatility of solar products.
In July Endesa announced that it was going to encourage quarterly auctions to be held for solar producers, which have been organised and supervised by OMIP, the independent Iberian Energy Derivatives Exchange. In these auctions, Endesa is the sole end purchaser of the power for an average of 500 GWh (depending on the solar production of each period according to the time of the year). Accordingly, forward-type financial contracts have been established based on the index published by OMIP, the SPEL Solar index, which received the approval of the Portuguese financial regulator CMVM, the Portuguese Securities Market Commission on 17 September of this year.
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.
Since the first solar auction was announced in July, Endesa has completed the existing offer in the financial market with other products aimed at renewable producers. In the medium-term, Endesa has the S3 product, a 3 year contract for any renewable installation that guarantees a fixed return on investment. In the longer term, Endesa offers fixed price power purchase agreements (PPAs) that facilitate financing and stimulate market investments in renewable energy installations.
