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HomeLatest NewsAdif awards Endesa the green supply mega-contract for 1,600 million

Adif awards Endesa the green supply mega-contract for 1,600 million

Date: March 29, 2024 Time: 08:11:53

Endesa has been the winner of the tender for the supply of green electricity launched by Adif for the transport of trains on the Spanish railway network. The electricity company directed by José Bogas will be in charge of supplying the necessary energy for the period between April 1, 2023 and December 31, 2025, with the possibility of being extended by one or two years. In exchange, obtain close to 1,600 million euros for this electricity, which must come from renewable sources and have a guarantee of origin.

As reported by the company, Endesa Energía has also won another lot of 109.6 million euros and Iberdrola Clientes another of 31.1 million for uses other than train traction such as passenger stations, freight terminals and other railway facilities. , without including the costs of access to the transmission and distribution networks, whose management will be fully carried out by Adif AV with the distribution companies.

The competition, governed by a first public phase and a second private negotiation with the participating companies, was presented by the five large Spanish electricity companies: Endesa, Iberdrola, Acciona, EDP and TotalEnergies. Once the first evaluation was completed, which all the companies passed, Adif opened a second closed negotiation period in which it required to improve the first offer received, thus complying with the negotiated procedure.

The new tender triples its cost compared to the previous one due to the rise in energy prices that have been reflected in recent months and its longer duration. If the contest launched in 2020 for two years involved a cost of 614 million euros, the new one reaches an estimated value of 1,850 million, which are borne by the different network operators depending on the energy they use to move their vehicles.

In addition to this contract, Adif also opened the negotiation for the supply of energy to its facilities, which includes passenger stations, freight terminals and other spaces. This was tendered for 158.6 million euros and received economic offers from EDP, Endesa and Iberdrola. In 2021, the consumption destined for the Adif and Adif AV facilities rose to 241 GWh and it is expected that, in 2022, it will rise to 248 GWh.

The main novelty of the contract happens because Adif assumes a unique modality in which the price will be indexed to the daily electricity market, but it will have the possibility of hedging in the OMIP futures market. In this way, and while waiting for the cost sharing formula to materialize, each operator may choose to cover the electricity prices required by their trains, avoiding cost increases such as those that have weighed down Renfe’s operating result. .

In 2021 the energy consumption for traction in the Adif and Adif AV railway network was 2,106 GWh and it is expected to rise to 2,414 GWh in 2022 due to the increase in traffic, driven by the liberalization of rail passenger transport, which has promoted the entry of new operators. The final cost of the contracts foreseen for actual consumption, the offers received, the resulting price in the OMIE wholesale market and possible price coverage in the OMIP market.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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