Initial findings from an EU-funded research project have recommended that governments give renewable energy developers easy access to auctions to ensure competitive bids.
The AURES study also found bidder obligations must be balanced correctly and that penalties do not guarantee project realisation.
In addition, the study, which analysed auctions in 8 EU countries, said that holding more than one tender per year enables long-term planning and certainty for investors.
The project also highlights the importance of tailoring auction design to national policy objectives and the market environment.
By January 2017 most EU countries will have to prepare auctions, according to the study. Eight nations have already implemented auctions.
The project group includes consultants Ecofys, Fraunhofer ISI, The Spanish National Research Council, Danish think tank CONCITO as well as several universities.
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RE auctions ‘need certainty’
EU-funded AURES project unveils recommendations for future tenders
By EBS