An auctionAn auction is a market mechanism with the aims of allocating... More 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... More 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... More level.
Auctions for RES-E supportJust like administratively set support, auction-allocated su... More 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... More;
- competitive pressure among renewables projects, and thus lower policy supportJust like administratively set support, auction-allocated su... More costs.
Historical experiences with auctions have shown that auctions can be successfully applied to increase the cost-effectiveness of renewables support, but also that the achieved performance is very sensitive to concrete design options.