Solarletter #5_EN - Massive withdrawal of connection permits in Spain
Also: Iberian PPAs fall above those in Europe, Chile connects its largest photovoltaic plant to date, and Top 20 module manufacturers of the first semester
Please note that text below has been translated from the spanish version by using AI
Hello everyone and welcome back to Solarletter. My name is Imanol Matanza, and I aim to share with you the latest news, technological advancements, and trends in the field of photovoltaic energy. Through Solarletter, I hope to provide you with valuable information, market analysis, state-of-the-art updates, and practical tips that will help you stay informed about the latest developments in the photovoltaic industry.
I am always open to suggestions, questions, and comments, so please feel free to contact me. If you like it, don't hesitate to subscribe and share!
Holidays, the hustle in the new job, and getting the apartment ready take a toll, and I owe you at least an apology for the delay in the fifth edition. At times, it is difficult for me to find the necessary time to sit down and write, even when I have the latest news fresh out of the oven... For now, I would like to release an edition every two weeks.
Now, let's go with the news for this week!
Massive withdrawal of connection permits in Spain
As we discussed in Solarletter #3, delays in administration led to a rush of fast-track approvals for Environmental Impact Assessments (DIAs). However, many other projects also failed to receive a positive approval.
As described in RD-23/2020 of June 23, they had until January 25 to submit a positive DIA to the administration to meet the second of the necessary milestones. The non-compliance has led many projects to lose their connection points that REE had granted them.
Among the most affected promoters are:
Capital Energy with 1,036 MW and a total of 17 projects. Although they also won another 1,540 MW in the renewable auction of October 2021, for which they have until June 30, 2024, to put them into operation.
Iberdrola with 668 MW divided into 2 plants.
Grupo Jorge with 392 MW.
Desarrollos Renovables Madroño with 130 MW.
Instituto de Energías Renovables with 110 MW.
Others such as Opdenergy, Rolwind, or Traxnam.
As mentioned in elEconomista, these projects are the first ones that officially fail to meet the second milestone of Article 1 of the RD and pose a threat to the other 12,000 MW that did not pass the Environmental Impact Assessment (DIA) to follow the same path.
Interesting is Joaquín Coronado Galdós' post on LinkedIn in which he presents different points of view on the matter.
What do the appellants say?
🆘 They argue that the administration has not met the deadlines for the DIA, and that it's not their fault.
🆘 They claim that the penalty for losing the connection point is excessive. They assert that REE and the CNMC should adopt a purposive interpretation of the regulation (meaning that the higher goal of facilitating the energy transition should not be hindered), rather than a literal and rigid interpretation.
🆘 Additionally, they argue that the expiration is not final until there is a judicial resolution, and they request as a precautionary measure that their connection points not be revoked.
What does the CNMC say?
✅ The CNMC states that there is indeed a conflict of access that pertains to REE's actions, but it does not encompass the decision of the environmental agency that denies the DIA.
✅ The CNMC asserts that there is no doubt about the interpretation of the RDs, and the connection should expire if the applicant has not demonstrated the DIA within the deadline, regardless of the reason. It indicates that if REE did not automatically expire the permit, it would be in violation of the law.
✅ The CNMC points out that there is precedent from the National Court indicating that precautionary measures do not apply, and if the CNMC were to rule against REE at a later stage, REE could always compensate or grant a new connection point if capacity is available.
Certainly, we will have to wait to see how the appeals progress. What do you think? Should they block the nodes until the cases are resolved? Or should they allocate them to other projects that are in line?
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Iberian PPAs fall above those in Europe
We now transition to PPA prices, and the June report from Pexaparc reveals a substantial decline in prices in the Iberian market. The discussed capitalization in Solarletter #3 has led to PPA prices dropping by up to 11% (approximately -4.6 €/MWh). Undoubtedly, this is a challenging blow for future projects, as their margins will be reduced, they will need to tighten their cost control, or even their economic viability might be impacted.
On the other hand, other markets have seen single-digit variations. There have been increases in markets like Poland, up by 4% (+2.7 €/MWh), and Nordic countries with a 3% increase (1.4 €/MWh).
Furthermore, the countries that drew the most attention due to their activity were Greece, France, and Great Britain.
We will observe how these trends evolve in future editions because, without a doubt, this is an interesting topic that will shape the course of renewable energy.
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Chile connects its largest photovoltaic plant to date
We travel to Chile now, as Enel has just received the green light from the Coordinador Eléctrico Nacional (CEN) to commence operations at the largest photovoltaic plant in the country to date. This project has employed up to 1,200 local workers during the construction process.
As explained in pv-magazine, Guanchoi features 900,000 bifacial monocrystalline modules, totaling 398 MWp, located in the Atacama region (which, if you've never heard of it, is the region with the highest solar irradiance in the world). Behind it are:
Campos del Sol with 375 MWp, developed and owned by Enel.
El Romero with 246.29 MWp, developed and owned by Acciona Energía.
Sol del Desierto with 244 MWp, developed by Atlas Renewable Energy Chile and still with a shareholding.
Diego de Almagro with 230 MWp, developed by Colbun and still with a shareholding.
Undoubtedly, the sizes of photovoltaic plants in Chile continue to be astonishing.
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Top 20 module manufacturers of the first semester
Solarbe Global has released the top 20 list of photovoltaic module manufacturers with the highest shipment volumes. As expected, Jinko Solar, Trina Solar, Longi, and JA Solar occupy the first four positions, with a significant lead over the rest. The combined capacity of these four alone reaches 108 GW.
It's worth noting that the ranking has been compiled based on data collected from tenders, supply contracts, and supplier visits. However, Solarbe plans to update the rankings after the publication of the semi-annual reports of publicly traded companies at the end of August.
It's noteworthy that N-Type modules have become the preferred option for an increasing number of customers.
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Edition´s microtip
In this edition, we have a fairly straightforward micro-tip, often overlooked, but crucial. The majority of DC connectors available in the market come with an auxiliary key/tool designed for proper thread tightening and easy disconnection.
It's quite common to encounter connectors tightened by hand, which might seem sufficient at first glance. However, these keys allow for a complete thread tightening, which "ensures" waterproofing and correct connector tightening.
If not used, it's only a matter of time before rainwater seeps in, leading to insulation issues. Not only that, but temperature changes in the cable due to environmental conditions or system operation eventually create mechanical stresses that can worsen the connection, resulting in hot spots that may ignite over time.
In the photo above, you can observe the difference between one side and the other of the connector.
That concludes the edition. I hope you enjoyed and it made your coffee break, public transportation ride, or nap more enjoyable. If you have any suggestions, recommendations, or comments, feel free to reply to this email.
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Sunny Regards!