Competitive power contract auctions around the world are helping to drive down the cost of wind power, according to a new report from Navigant Research.
The report – ‘Global Wind Energy Policy and Market Risk Assessment’ – examines the strengths and weaknesses of the policies to promote the development of wind energy in 28 countries.
Navigant Research senior research analyst Jesse Broehl said: “One of the biggest stories in the wind energy markets is the steady rise of competitive power contract auctions, which is driving down the cost of wind power to utilities and ratepayers while still enabling the profitable construction and financing of wind plants.”
He added that, although the concept of auctions is not new, the pace of implementation since the company last produced a similar report in 2015 is significant.
“Nine countries have seen positive, substantial progress implementing power contract auctions, two countries are likely to enact new power contract auction schemes, and three countries have stumbled in their implementation of these auction programs – leading to a higher risk environment,” he said.
Image: reNEWS
Auctions ‘help cut wind costs’
Navigant report analyses policies to promote sector in 28 countries
By EBS