Final Extension of the Deadlines Originally Set for the Solar Auctions
Despacho No. 170/MAEN/2025 extends, for the third time and by 12 months, the deadlines for winning solar auction projects, stating it is "non-extendable".
The government decided to extend by one more year the deadline for completing solar auction projects, through Despacho No. 170/MAEN/2025, from the Minister of Environment and Energy, published on 19 May 2025. It is the third extension of the deadlines originally set in Despacho Conjunto No. 1/SEAMB/SEENC, of 22 February 2024, and the order expressly labels it a "final, non-extendable extension".
Why the Extension
- Difficulties in environmental licensing and grid connections
- Problems in the supply of solar equipment, such as panels and inverters
- Delays in obtaining financing and rising construction costs
- Impacts of the pandemic and the war in Ukraine
The 2020 auction was the most affected: none of the 13 awarded projects (around 670 MW) had been completed by early 2024. In the 2019 auction, just under half of the projects are already operational, with some not expected until 2027. Risks noted include a loss of credibility for the auction regime, unfair competition against developers who met their deadlines, and possible grid overload from the concentrated arrival of new projects.