Endesa purchases 410 GWh in the third solar energy auction

Published on Tuesday, 15 March 2016

Today 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 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 and adjusted seasonally). Accordingly, forward financial contracts have been established based on the the SPEL Solar index, published by OMIP, , which was given the green light by the Portuguese financial regulator, the Portuguese Securities Market Commission (CMVM), on 17 Septemberof last year. 

Until the solar auctions began, the wholesale forward market had not offered 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 benchmark by which to analyse the performance and progress of this technology in the financial markets. 

Since the first solar auction was announced in July, Endesa has moved to complete the range of existing products aimed at renewable energy suppliers in the financial market. In the medium term, Endesa offers 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.

For more information about the third auction for the purchase of solar Energy promoted by Endesa: http://www.omip.pt/LinkClick.aspx?fileticket=ahmDqQL0iVU%3d&tabid=99&mid=556&language=es-ES