Last August, the Portuguese government awarded a tender for 670 MW of solar energy. The tender for solar energy achieved a world record low price of €11.14 per MWh (€0.01120/kWh) in one of the lots. This price is much lower than the bids seen in a recent Spanish tender where the lowest bid for solar energy was €0.01498 kWh.
There is growing interest from international players to compete in the market as Portugal's demand for greener energy increases considerably. In November 2021, the last coal power plant in operation in the country will shut down, transforming the country as the fourth European state to eliminate coal from electricity production.
Nonetheless, developing green energy in the country can be more challenging than one might expect. Compared to other nations in Europe, Portugal's total geographical area is much smaller, and its peripheral location is a difficult challenge in terms of interconnectors.
As a new player looking to enter the market, it is getting harder than ever given the size of a few developers that dominate the market. Even for those smaller companies that might penetrate the market, financing their projects is another challenge they must face.
Overall, this is a topic of discussion that creates a passionate response from everyone in the industry. Please join us for our next webinar on February 25th at 16:00 PT time to dive deeper into the subject with a panel of seasoned professionals.
Participation is free and everyone is welcome to attend.
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