Abstract
The first offshore wind energy auction in Germany led to a striking result. The average award price was 0.44 ct/kWh and even more interesting, 3 out of 4 awarded projects had a strike price of 0.0 ct/kWh. That implies that those projects will only receive the actual wholesale market price for electricity as revenue. Although there has been a strong decline in costs of offshore wind projects, such a result is still surprising. We analyzed this result auction-theoretically and showed how the auction design and the market environment can explain part of the outcome. However, another aspect of the explanation is the high risk that the awarded bidders take regarding the future development of both the project costs and the wholesale market price.
Highlights
Since 2017 all renewable energy support (RES) in Germany is determined in auctions [1] in accordance to the EU state aid guidelines [2]
We evaluate whether the current auction design fits the altered conditions and which consequences they have regarding the future support of renewable energy
Depending on the auctioned technology, there are different possibilities to achieve this goal through changes in the auction design, for example an adaption in the remuneration type to the respective market environment
Summary
- New Technologies for Smart Grid Operation: New issues facing smart grids S T Mak. - Application of DBD and DBCD in SO2 Removal Sun Yanzhou, Qiu Yuchang, Yu Fashan et al. - New Technologies for Smart Grid Operation: New issues facing smart grids S T Mak. - Application of DBD and DBCD in SO2 Removal Sun Yanzhou, Qiu Yuchang, Yu Fashan et al. This content was downloaded from IP address 129.13.72.197 on 12/01/2018 at 07:27. WindEurope Conference & Exhibition 2017 IOP Conf.
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