Factor develops the lastest report of AURES II: Effects of auctions on RES value chains”
24 September 2020 | Energy
Since 2018 Factor has been collaborating in the European project “Auctions for Renewable Energy Support II” (AURES II), which investigates options for the design of auctions for renewable energies in EU Member States. In the development of the project an objective and multi-methodological approach is applied which includes the study of legislation, theoretical analyses, country and auction case studies, surveys and empirical and quantitative analyses, as well as econometric analysis and simulations of models.
In the process of developing an auction, policy makers are tasked with making specific decisions and trade-offs related to the auction design elements (DEs). Depending on these elements, auctions may favour certain groups of actors over others, and which can lead to increased levels of market concentration (MC).
In the latest study on renewable energy auctions, Factor participated as the leader of the analysis group, in collaboration with the Spanish National Research Council (CSIC) and the University of Exeter in the United Kingdom. The research for the report, "Effects of Auctions on RES value chains", was carried out in four different countries (Spain, Peru, South Africa and the United Kingdom). In addition, four renewable energy sources were also studied: solar PV, concentrated solar power (CSP), onshore wind and offshore wind.
Two different topics were empirically analysed in the study. On the one hand, the effects of different auction DEs on renewable energy MC levels, within the project development and component manufacturing segments of the renewable energy value chain. And on the other hand, the relative impact of auctions (compared to other contextual factors influencing the value chain) on MC in the two considered value chain segments.
You can download the study report on the official AURES II website: http://aures2project.eu/2020/07/31/effects-of-auctions-on-res-value-chains/
Factor Ideas for change
Factor has more than 15 years of experience offering technical consulting services in the areas of climate change adaptation and mitigation, carbon footprint analysis, sustainability, circular economy, renewable energy and carbon markets, amongst other things, undertaken on behalf of governments and international organizations, as well as for over 400 companies, with more than 1,100 projects undertaken within 40+ countries.