Papeles de Energía
Papeles de Energía, N.º 13 (junio 2021)
Auctions for Renewable Energy Support II - First insights and results of the Horizon2020 project AURES II
The Horizon2020 project AURES II aims at ensuring the effective implementation of auctions for renewable energies in the EU Member States (MS). In recent years, auction schemes for the allocation of support for renewable electricity sources (RES) have been advancing rapidly across Europe. Auctions are considered to have brought down support levels and increased planning capability for RES deployment and state budgets. In some unfortunate cases, they have, however, also resulted in delayed or unrealised projects and increased uncertainty for project developers. A variety of auction designs are still being tested and introduced in EU MS, as well as foreseen by European legislation. Therefore, there is still a need for further assessment and improvement of national auction design and implementation to ensure the future success of RES auctions in Europe. Applying different qualitative and quantitative methods in the various work packages (WPs), the AURES II project partners have already drafted and published a large number of reports and studies. This article aims at comprehensively presenting these results and provide a first overview.
Design and results of recent renewable energy auctions in Europe
The Horizon2020 project AURES II aims at contributing to the effective implementation of auctions for Renewable Energy Resources with research-based insights and policy recommendations. The paper focuses on the main design elements applied in the recent renewable auctions and their impact on the effectiveness and efficiency of renewable support allocation. Drawing on 10 European case studies, the analysis investigates whether there is a convergence in the auction design across countries, whether a general cost reduction trend can be observed, and looks at how successful previous auctions were in delivering contracted capacities. It also assesses the new trends and developments, and presents some emerging, innovative forms of auctions targeting carbon emission mitigation.
An assessment of the design of the new renewable electricity auctions in Spain under an international perspective
In order to comply with its renewable energy targets, a new auction scheme has been adopted in Spain, and the first auction with the new scheme was conducted in January 2021. The design of the new auction implies a radical rupture with the previous auction scheme, on the basis of which auctions were organized in 2016 and 2017. The aim of this paper is to assess the design element choices made in the new auction scheme, identifying its pros and cons according to several criteria and goals, comparing them with the choices made in the previous auctions and with the international practice. The main conclusion is that the design elements of the new auctions are generally in line with international practice and are appropriate to achieve the goals set in the National Climate and Energy Plan (NECP). Nevertheless, some suggestions for changes in the scheme are provided.