AURES II · Auctions for Renewable Energy Support II

Building on the insights of the recently finalized AURES project, AURES II investigates auction design options in more detail to determine their policy performance depending on different of policy objectives and give recommendations on their use. We apply a multi-methodological approach, including literature review, theoretical analysis, case studies, surveys, and empirical and quantitative methods such as econometric analysis and model simulations. The project expands the empirical base created in AURES in several directions. It continues the monitoring of ongoing and planned auction schemes. Case studies will now be complemented by a comprehensive online auction database, and quantitative analysis of how auction design features affect auction performance. The effects of auctions are further explored in two directions: (i) Developments in RES sector value chains and innovation processes in reaction to auctions, and (ii) Changes in financing patterns of RES projects in reaction to certain auction design specifications. AURES II will inform currently ongoing auction-related policy debates: (i) Challenges of cross-border openings of auctions; (ii) the question of technology-neutrality, i.e. of combining two or more RES-E technologies in one auction; and (iii) future challenges, including the necessity for and requirements towards auctions due to changing electricity markets, generation patterns, and other framework conditions such as actor diversity. The multi-methodological approach is accompanied by a strong involvement of relevant stakeholders including policy makers and industry representatives. The project builds upon and expands the strong network from AURES, allowing policy makers and industry to exchange expectations, experiences and ideas. This active dialogue allows stakeholder to learn from best practice and facilitates capacity building across borders in Europe. AURES II contributes to the EC’s communication activities in the area of RES auction design.