Title
Policy choices and outcomes for offshore wind auctions globally
Author
Jansen, M.
Beiter, P.
Riepin, I.
Musgens, F.
Guajardo-Fajardo, V.J.
Stafell, I.
Bulder, B.H.
Kitzing, L.
Publication year
2022
Abstract
Offshore wind energy is rapidly expanding, facilitated largely through auctions run by governments. We provide a detailed quantified overview of utilised auction schemes, including geographical spread, volumes, results, and design specifications. Our comprehensive global dataset reveals heterogeneous designs. Although most auction designs provide some form of revenue stabilisation, their specific instrument choices vary and include feed-in tariffs, one-sided and two-sided contracts for difference, mandated power purchase agreements, and mandated renewable energy certificates. We review the schemes used in all eight major offshore wind jurisdictions across Europe, Asia, and North America and evaluate bids in their jurisdictional context. We analyse cost competitiveness, likelihood of timely construction, occurrence of strategic bidding, and identify jurisdictional aspects that might have influenced auction results. We find that auctions are embedded within their respective regulatory and market design context, and are remarkably diverse, though with regional similarities. Auctions in each jurisdiction have evolved and tend to become more exposed to market price risks over time. Less mature markets are more prone to make use of lower-risk designs. Still, some form of revenue stabilisation is employed for all auctioned offshore wind energy farms analysed here, regardless of the specific policy choices. Our data confirm a coincidence of declining costs and growing diffusion of auction regimes.
Subject
Auction database
Policy analysis
Remuneration Mechanism
Renewable energy
Revenue stabilisation
Support scheme
Tender design
Energy Efficiency
Energy / Geological Survey Netherlands
To reference this document use:
http://resolver.tudelft.nl/uuid:002fede4-6be8-400d-8139-34b7c31ebcf6
DOI
https://doi.org/10.1016/j.enpol.2022.113000
TNO identifier
980698
Publisher
Elsevier Ltd
ISSN
0301-4215
Source
Energy Policy, 167 (167), 1-17
Document type
article