Impact of COVID-19 on Renewable Energy Auctions

This is the final version. Available from AURES II via the link in this recordAuctions for renewable energy (RES) support are market-based, competitive bidding processes to identify the most appropriate RES projects to be constructed within a certain time frame and allocate support payments to these projects. Most EU Member States have introduced RES auctions that seem to have resulted in strong price decreases. The COVID-19 pandemic, its consequential lock-down of economic activity, the increased risks for investors and fears about an economic recession, have had profound immediate effects on the energy sector. Power demand has strongly decreased and there is high uncertainty for the mid-term. Industry associations worry that a reduced power demand and tighter budgets could reduce new auction volumes of RES projects.European Commissio

Auctions for Renewable Energy Support II - First insights and results of the Horizon2020 project AURES II

This is the final version. Available from Funcas via the link in this recordThe 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.European Union Horizon 202