Events / REKK Workshops
Current state of government auctions in EU and ENC member states – Best practices and challenges12 of December, 2023 - 9:00 - 11:45 CET
Location: online

Renewable energy auctions have played an important role in increasing renewable energy production in the EU and reducing subsidy costs through competitive tendering. During a project supported by the European Climate Foundation, we provide guidance to the relevant entities of the Energy Community (EnC) Contracting Parties on the implementation and efficient operation of renewable energy auctions, based on experiences with auction schemes operated by EU Member States.

At the online workshop we presented current trends and changes in renewable energy auctions in the EU and talked about the role of auctions in the future EU electricity market design. We also took a look at the progress which EnC contracting parties have so far made with auctions.

Speakers:

  • Jose Enrique Elías Cabrera, Policy Officer, DG Energy, European Commission
  • Naida Taso, Renewable Energy Expert, Energy Community Secretariat

  • Dr. Aleksandar Dedinec, Researcher, Macedonian Academy of Sciences and Arts
  • Alfa Diallo, REKK senior research associate and project leader

  • Bettina Dézsi, REKK research associate

  • András Vékony, REKK senior research associate.

Workshop outcomes and messages:

  • Since the energy crisis, auction prices in Europe have risen and, typically, not all the capacity that has been put up for auction was allocated.
  • In the energy markets of the future, auctions and PPAs are expected to be complementary tools to achieve renewable energy targets.
  • A growing number of Energy Community countries are introducing auctions, but liquid wholesale markets are also needed for the efficient operation of premium systems. This is not yet the case in each contracting party.
  • The Energy Community contracting parties' renewable energy auctions have specific design elements, but most auction rounds can be considered successful.
  • These auctions typically require stricter pre-qualification criteria, which may be a barrier to the success of the auctions in the long term.