Auctions are quite common in the European Union (EU) for the support of renewable electricity, but are very rare in the heating sector. There are currently only few existing auctions for heat generation plants in place, e.g. auctions for innovative combined heat and power plants (CHP) in Germany or heat generation in Lithua-nia. Also in theory, the prerequisites, design options, and success factors for auctions in this field are yet mostly unexplored. This policy brief will address these points and outline potential starting points for expand-ing the use of auctions in the heating sector.

The policy brief is structured as follows: Section 2 describes auctions in the heating sector from a theoretical perspective. Section 3 focuses on already established auctions for CHP and looks into examples in Germany, Poland and Slovenia. Section 4 discusses auctions for heat generation plants based on exemplary auctions in Estonia, Lithuania and the Netherlands. Section 5 looks into auctions for DH systems with examples from Ireland and Germany. Section 6 concludes.

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