How to design a good offshore wind auction
Policy choices matter and have a huger impact on cost of power
I have written an article for Energy Voice's new E-FWD platform:
As the offshore wind sector struggles with cost increases and the often-hostile scrutiny that this brings, it is worth taking a step back to think about how governments should design auctions to get projects built at the lowest possible cost.
Several of the recent highly publicised project cancellations or delays are directly linked to poor auction design, so it makes sense to avoid or correct certain mistakes.
The goals of auctions are many, and some governments may prioritise some over others, but it is worth listing them explicitly.
• Getting low-carbon power generation capacity built
• Getting it done as rapidly as possible, or according to a long-term strategy
• Getting power at the cheapest cost possible, both at the project level and from a system-wide perspective
• Getting local benefits, whether in the form of jobs or industrial development
The rest, including my suggestions for the best auction design, can be read at the following link (behind paywall unfortunately). I'm trying to find a smart way to allow people to get access to my articles while respecting the fact that platforms like EnergyVoice need to make money from providing good content, and your comments and suggestions on that topic are welcome!
Thanks for reading Jérôme à Paris ! Subscribe for free to receive new posts and support my work.