An auctionAn auction is a market mechanism with the aims of allocating... is a process in which a good or several goods are offered up for bidding. For the supportJust like administratively set support, auction-allocated su... of electricity from renewable energies (RES-E), we consider so-called procurement auctions. That is, an auctioneer will buy the good (renewable electricity) from the bidder(s) offering the best bid, e.g. lowest supportJust like administratively set support, auction-allocated su... level.
Auctions for RES-E supportJust like administratively set support, auction-allocated su... address several policy goals:
- control over timing and quantity of renewables deployment;
- transparent market prices for renewable supportJust like administratively set support, auction-allocated su...;
- competitive pressure among renewables projects, and thus lower policy supportJust like administratively set support, auction-allocated su... costs.
Historical experiences with auctions have shown that auctions can be successfully applied to increase the cost-effectiveness of renewables supportJust like administratively set support, auction-allocated su..., but also that the achieved performance is very sensitive to concrete design options.
To get a deeper knowledge on auctions, check our AuctionAn auction is a market mechanism with the aims of allocating... Tools: