A new auction system, a new market and a strong success
All over the world, the wind industry is seeing the introduction of auction systems. Whether in established and rather mature wind markets like Germany, or new emerging markets in South America, the trend is clear and it can be a real challenge for all active players.
Senvion’s experience from the Argentinian RenovAr auctions
In Argentina, the implementation of a new auction system has proven to be successful. Nevertheless, unexpected adaptations of the rules, especially regarding local content requirements have challenged all players involved and demands particularly high flexibility and timeliness to adapt to the local and political requirements. With RenovAr 2.0, 550MW of wind energy projects were to be awarded.
Surprises at the last minute
Nevertheless, in a competition for more than 3 GW of submitted projects for wind only, a good site with an adequate turbine is only part of the equation. For Senvion, the preparation of the auction was an experience. Just a few days before the submission deadline, the Argentinian authorities released a decree which featured an import tax system for wind turbine components, already applicable for that same auction round. Most offers were not calculated considering the newly introduced import tax regulation, which was not expected to be released in such short notice, and with the bid submission deadline right around the corner.
We wanted to make sure that we offered the wind farm setup which best achieves the lowest LCOE possible, and maximizes the economic returns of the investment, making the wind project a long-term profitable asset.
However Senvion was prepared: A fast communication with all local and national authorities as well as infrastructure players and all sub-contractors was crucial to adapt within these few days and maintain the competitiveness of our offers.
Mario Leal de la Rosa, Sales Manager at Senvion explains: “Even before that new challenge, the Hamburg-based team worked closely together with its Wind & Site team in South America. We wanted to give our customers the expertise that they required, with the thorough knowledge of the specific restrictions and wind conditions. We wanted to make sure that we offered the wind farm setup which best achieves the lowest LCOE possible, and maximizes the economic returns of the investment, making the wind project a long-term profitable asset.”