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Covid-19 and distressed solar PPAs in Spain

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published on 29 March 2021 in PV Magazine

 

Rödl & Partner Spain provides an update on distressed solar power purchase agreements (PPAs) in Spain, focusing on the impact, and economic and legal consequences, of the Covid-19 pandemic.

 

 

Over the past few years, the Spanish power market has become the epitome of subsidy-free renewables in Europe. Due to rising wholesale power prices and plummeting costs for large-scale PV, the Spanish solar market has built up an impressive subsidy-free pipeline.


In 2018 and 2019, wholesale market revenues of PV projects exceeded the levelized cost of generation (LCOE) by up to €30/MWh. Against this backdrop, more than seven GW of solar PV projects signed a power purchase agreement (PPAs) within the last two years.


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