In an article for Energy Post, Navigant describes key factors triggering aggressive bidding and how to mitigate nonrealization risks
Renewable electricity auctions have seen record low prices around the world, with latest results for solar and offshore wind energy coming from Saudi Arabia, India, Mexico, Germany, and the Netherlands. Why do auctions seem to be so effective in driving down costs – and what are the risks?
In an article for Energy Post, Ana Amazo-Blanco and Silvana Tiedemann of Navigant, and Dr. Stephen Tay and Monika Bieri of SERIS looked at a solar PV rooftop auction in Singapore and an offshore wind auction in Germany to discover the key factors behind the bids and suggest how project developers can make sure the projects are realized successfully.
“Finding the right mix of measures and balance in the local market context is vital for an effective auction design, especially for technologies as different as solar and offshore wind,” the authors wrote.
In the article, the energy consultant and other experts describe several policy measures that may help avoid harmful market concentration and ensure project realization.