IRENA has published a guide on renewable energy auctions designed to decrease costs, attract investment and drive global renewable energy deployment.
The six-volume guidebook ‘ Renewable Energy Auctions: A Guide to Design ’ aims to advise policy makers on the implications of different approaches to such auctions, IRENA’s press release reads.
The set, structured around key auction design elements, offers choices and recommendations to support optimal decision-making in different contexts. Auction designs can emphasize cost effectiveness, supply security or socio-economic development objectives, according to IRENA.
Auctions refer to competitive bidding procurement processes for electricity from renewable energy or where renewable energy technologies are eligible. The auctioned product can be either capacity (MW) or energy (MWh).
Adnan Amin , General Director at IRENA, said: “In an era of rapidly declining costs and growing deployment in renewable energy, policies are being adapted to maintain efficiency and effectiveness. In this context, one of the most significant recent policy developments is the growing popularity of renewable energy auctions.”
The guide analyses auction design elements and highlights best practices for policy makers and investors considering auctions in their own countries. It also includes technical auction design sections on demand, qualification requirements, the winner selection process and seller’s liabilities, IRENA’s press release reads.
Rabia Ferroukhi , IRENA Deputy Director of Knowledge, Policy and Finance and a lead author on the report said: “This guide provides both high-level and technical support to policy makers considering auctions as a means to reach their sustainability targets. Its release is timely and can help support the growth of auctions as a policy tool for renewable energy deployment.”
IRENA is an intergovernmental organization made up from 140 members (139 states and the European Union) that promotes the adoption and sustainable use of renewable energy.
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Images: IRENA