Methodology Report on modelling of renewable energy auctions.

This report describes the methodology of modelling renewable energy auctions and their outcomes from a game theoretic perspective (agent-based model) as well as from the overall energy system model perspective (Green-X model).

The agent-based model can depict a variety of auction schemes and their respective design elements as well as regulatory features as e.g. restrictions to participation. Pay-as-bid and uniform pricing auctions can be shown, either as a one-shot auction or a multi-round auction that allows participants and the auctioning entity to learn. It is furthermore possible to model the agents in a very detailed manner, to depict the respective auction participants in a country or to investigate a certain question concerning the auction outcome. Several applications of the model in AURES D7.3 “Model-based analysis of specific cases” will make this clearer.

Within the course of AURES we have extended the applicability of auction-based RES support in TU Wien’s Green-X model, a well-established (sectorial) energy system model that allows for conducting RES-related energy policy assessments in the European context. The extended version of the model will be applied in the AURES project to conduct a comparative assessment of the performance of auctions to other instruments used for incentivising of renewable energy deployment. Within this report we introduce the modelling system, inform on key assumptions and provide an outlook on the envisaged application, shedding light on how the EU can reach the 2030 RES target by use of auctions or through alternative policy instruments.

Download the report here.