Spanish government renewable energy auctions in January produced record-breaking low strike prices for both wind and solar. For solar the average price was €24.47/MWh (the lowest was €14.98/MWh), guaranteed for 12 years through contracts-for-difference (CfDs). As such auctions continue around Europe, Michael Claußner at Energy Brainpool asks what impact these prices will have on future power prices in general and on solar power purchase agreement … [Read more...]
Europe could have subsidy-free Offshore Wind by 2023
A study has analysed offshore wind projects in 5 countries – the UK, Germany, Denmark, the Netherlands and Belgium – to show that wind farms due to be built after 2020 are converging towards a range of €50-70/MWh. It wasn’t long ago that such low prices were only predicted for 2050, say Iegor Riepin, Felix Müsgens (Brandenburg University of Technology), Malte Jansen and Iain Staffell (Imperial College London), writing for Carbon Brief. To make … [Read more...]
Tech-Neutral Auctions for Renewable Energy: are poorly defined rules creating loopholes?
The EC’s Environmental and Energy State Aid Guidelines 2014-2020 (EEAG) require Member States to implement technology-neutral auctions as part of their renewable energy support schemes. However, the reality looks quite different, write Bastian Lotz and Silvana Tiedemann from Navigant (a Guidehouse company), Lars Jerrentrup of Aurora Energy Research, and Lion Hirth from Neon. Most Member States continue to use technology-specific auctions, using … [Read more...]
2019-2024: competitive auctions will launch over 2/3rds of utility-scale renewables, says IEA
Government support for new utility-scale capacity is being replaced with competitive auctions, the surest sign that the commercial appetite for renewables - particularly solar PV and onshore wind - is growing strong. This article by the IEA pulls out the essential numbers from their annual Renewables 2019 report (their 5-year market analysis and forecast for renewable energy and technologies in the electricity, heat and transport sectors). The … [Read more...]
Climate Auctions can reduce emissions and accelerate regulatory, financial and infrastructure goals
Auctions for delivering an amount of power at a defined price are already well established for renewables. “Climate Auctions” do the same with carbon emissions: a carbon price is guaranteed to the winning bidder, but only paid on delivery of the emissions cut. Tyeler Matsuo and Julia Meisel at Rocky Mountain Institute say this is proving particularly useful in emerging and developing countries where progress in building up their climate laws is … [Read more...]
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