In the past few years, auctions have become more and more popular, often being the preferred policy option to advance renewable energy deployment. The number of countries that adopted renewable energy auctions increased from 6 in 2005 to more than 67 by early 2017.
The increasing popularity of the auction scheme can be attributed to its potential to achieve deployment in a cost-efficient way and to its ability to bring out the real price of the product being auctioned by means of a structured, transparent and most importantly, competitive process. In response to policy makers’ increasing interest in the auction scheme, IRENA has developed the studies Renewable Energy Auctions in Developing Countries, Renewable Energy Auctions: A Guide to Design. and Renewable Energy Auctions: Analysing 2016. They analyse the design elements characterizing auctions, the trade-offs that must be considered when selecting them, and investigate the factors that have been influencing the prices resulting from recent auctions globally.