With winning bid prices lower than in previous auctions, even with a record low for PV of 14.89 € /MWh, one of the most widespread doubts by our audience was to know if some speculation could be behind the low prices.

On this note, Kim Keats, Director at EKON explained that «we would understand ‘simple’ speculation as the award of capacity in the auction, which begins to develop and then sell the rights to a third party. In this process we consider that there is not much to speculate, prices are competitive and there is value in having an offtaker contract with the Government. We believe that the main motivation has not been speculation, but to offer the market competitive prices”.

For his part, Antonio Arco, Senior Consultant at EKON points out that “speculation comes first, not in the development of the projects, but rather at the point of connection. The auction does not give you any favored treatment, you must already have connection rights awarded by REE (Red Eléctrica de España)”.

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