Performance of renewable energy auctions: experience in Brazil, China and India

Gabriela Elizondo Azuela, Luiz Barroso (), Ashish Khanna, Xiaodong Wang, Yun Wu and Gabriel Cunha

No 7062, Policy Research Working Paper Series from The World Bank

Abstract: This paper considers the design and performance of auction mechanisms used to deploy renewable energy in three emerging economies: Brazil, China, and India. The analysis focuses on the countries'experience in various dimensions, including price reductions, bidding dynamics, coordination with transmission planning, risk allocation strategies, and the issue of domestic content. Several countries have turned to public competitive bidding as a mechanism for developing the renewable generation sector in recent years, with the number of countries implementing some sort of auction procedure rising from nine in 2009 to 36 by the end of 2011 and about 43 in 2013. In general, the use of auctions makes sense when the contracting authority expects a large volume of potentially suitable bids, so that the gains from competition can offset the costs of implementation. A study of the successes and failures of the particular auction design schemes described in this paper can be instrumental in informing future policy making.

Keywords: Energy Production and Transportation; Markets and Market Access; Climate Change Mitigation and Green House Gases; Debt Markets; Emerging Markets (search for similar items in EconPapers)
Date: 2014-10-01
New Economics Papers: this item is included in nep-cna, nep-ene, nep-env, nep-lam and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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