Auctioning procedures are rapidly being adopted by governments around the world to allocate renewable energy (RE) supportJust like administratively set support, auction-allocated su..., and in 2018 they have been integrated into supportJust like administratively set support, auction-allocated su... systems of 94 countries (based on a forthcoming IRENA report). They are also increasingly being implemented within the European Union (EU) and the neighbouring Energy Community countries. However, the effect of auctions and individual auctionAn auction is a market mechanism with the aims of allocating... designs on financing conditions for renewables has until now not been investigated systematically. This report is the first step in this direction. We examine the potential effects of auctions on costs of capital, with the aim of understanding how certain design choices may contribute to improving financing conditions of RE investments. Besides looking at individual designs, we also establish some general market-based implications of introducing auctions for financing conditions.
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