Only a tiny fraction of 3.3GW on offer was awarded in Spain’s latest renewables tender as a price cap of around €47 ($49) per MWh failed by far to “reflect the real cost of energy”, the country’s wind energy association (AEE) claimed.

The slow pace of permitting and processing also contributed to the failure of the auction that meant to tender off 1.8GW of solar and 1.5GW of wind energy. only 46MW of new wind capacity was awarded.

The 'secret' price cap, which hadn't been communicated to developers, neither took into account the impact of inflation on the costs of new renewable installations, nor the prospects for future electricity prices, the AEE said.