WWEA: Introducing competitive bidding processes for renewable energy plants – will it be worth it?

The introduction of auctions for renewable energy procurement, foreseen by the European Commission (in its “Guidelines on State aid for environmental protection and energy 2014-2020”) to begin from 2017,will mark an important policy change for many member states. The European Commission’s objectives in publishing these new guidelines include strengthening “the internal market, promoting more effectiveness in public spending through a better contribution of State aid to the objectives of common interest, greater scrutiny on the incentive effect, on limiting the aid to the minimum necessary, and on avoiding the potential negative effects of the aid on competition and trade.” (Guidelines, para.12).

In general, proponents of tenders give three main reasons for the favourability of auctions in comparison with other instruments employed to finance the expansion of renewable energies:

  • First, the supposedly higher (static) economic efficiency compared to the administrative setting of tariffs,
  • second, a more targeted controllability of renewable energy expansion and
  • third, the conviction that decisions on the financing of renewable energies would be taken more neutrally by ‘the market’ than by politicians or by the administration charged with this task.

Read more in the WWEA Quarterly Bulletin 3-2014

Find other WWEA issues in the newly published WWEA Quartely Bulletin 3-2014 (Highlight Wind Power in China). This edition of the WWEA Quarterly Bulletin documents several of the latest trends of wind power in the world: WWEA’s suggestions for the recent G20 Summit in Brisbane are reflected as well as latest research on auctions as a policy instrument which seems to obtain major support amongst policy-makers – in spite of their lack of proven effectiveness and efficiency. In fact, auctions seem to be widely overestimated as a tool to bring dow cost and drive wind power markets.

WWEA Quartely Bulletin – Issue 3-2014 content:

News Analysis

  • G20 Meeting in Brisbane: Global Wind Energy Infrastructure Development

  • WWEA welcomes 600th member: FWT energy GmbH

Research

  • Introducing competitive bidding processes for renewable energy plants – will it be worth it?

Report

  • WWEA half-year report 2014

  • 20 Global Renewable Energy Generation Capacity Jumps to Record Level

Regional Focus

  • Future perspective and current status of wind energy in Japan after Fukushima

  • The Cuban policy for the prospective development of renewable energy resources 2014-2030

Download the bulletin 3-2014The introduction of auctions for renewable energy procurement, foreseen by the European Commission (in its “Guidelines on State aid for environmental protection and energy 2014-2020”) to begin from 2017,will mark an important policy change for many member states. The European Commission’s objectives in publishing these new guidelines include strengthening “the internal market, promoting more effectiveness in public spending through a better contribution of State aid to the objectives of common interest, greater scrutiny on the incentive effect, on limiting the aid to the minimum necessary, and on avoiding the potential negative effects of the aid on competition and trade.” (Guidelines, para.12).

In general, proponents of tenders give three main reasons for the favourability of auctions in comparison with other instruments employed to finance the expansion of renewable energies:

  • First, the supposedly higher (static) economic efficiency compared to the administrative setting of tariffs,
  • second, a more targeted controllability of renewable energy expansion and
  • third, the conviction that decisions on the financing of renewable energies would be taken more neutrally by ‘the market’ than by politicians or by the administration charged with this task.

Read more in the WWEA Quarterly Bulletin 3-2014

Find other WWEA issues in the newly published WWEA Quartely Bulletin 3-2014 (Highlight Wind Power in China). This edition of the WWEA Quarterly Bulletin documents several of the latest trends of wind power in the world: WWEA’s suggestions for the recent G20 Summit in Brisbane are reflected as well as latest research on auctions as a policy instrument which seems to obtain major support amongst policy-makers – in spite of their lack of proven effectiveness and efficiency. In fact, auctions seem to be widely overestimated as a tool to bring dow cost and drive wind power markets.

WWEA Quartely Bulletin – Issue 3-2014 content:

News Analysis

  • G20 Meeting in Brisbane: Global Wind Energy Infrastructure Development

  • WWEA welcomes 600th member: FWT energy GmbH

Research

  • Introducing competitive bidding processes for renewable energy plants – will it be worth it?

Report

  • WWEA half-year report 2014

  • 20 Global Renewable Energy Generation Capacity Jumps to Record Level

Regional Focus

  • Future perspective and current status of wind energy in Japan after Fukushima

  • The Cuban policy for the prospective development of renewable energy resources 2014-2030

Download the bulletin 3-2014