Wind projects secured nearly all of the 3GW made available in Spain’s renewable energy auction.
The auction resulted in contracts for €43/MWh (£37.1/MWh), the lowest level ever awarded in European onshore wind tenders.
The industry welcomes the results as a positive development for the cost-competitive technology.
It follows a three-year market standstill triggered by cuts to the Spanish feed-in tariff in 2013, which some say risked the prospect of the country complying with its 2020 EU renewable energy target.
Spain now needs to deploy additional renewable generation if it’s to meet its climate change commitments.
Giles Dickson, CEO of WindEurope, said: “The tender results show how onshore wind is today the cheapest option for new power generation. Some may think wind energy no longer needs subsidies.
“But it was the fact the auction offered a guaranteed minimum income that attracted investors and ensured there were enough bids to deliver the low price.
“Today’s auction is an important step towards restoring confidence in the Spanish wind market. But there’s still some way to go.”