Innovation in general and, more specifically, innovation in renewable energy technologies (RETs) will be a critical component of the energy transition. Deployment policies and, particularly, auctions may have an indirect contribution to the energy transition (supporting technological innovation in RETs) in addition to the direct one (supporting the deployment of those technologies). Auctions and choices of design elements are likely to have impacts on a wide-array of issues. Some of them have been analysed at length both in the AURES and AURES II projects. However, attention has not been paid so far in the auction literature to how auctions and auction design elements influence innovation in RETs. The research carried out in this task 4.3 of the AURES II project aims to cover this gap.

The aim of this report is to cover this gap in the literature by providing an analytical framework on the mechanisms linking diffusion-driven technological innovation and auctions and their design elements and to carry out a preliminary empirical analysis which allows us to identify the perception of key stakeholders on the topic and, based on theory and on those perceptions, to put forward some research proposals to be investigated in future research. This report also highlights some of the methodological challenges that will be faced by those aiming to undertake future in-depth empirical analyses on this topic.

Download the report here.