Currently auction is the most rapidly spreading renewable support policy. In 2017 and 2018 alone, auctions were used to incentivize investments in a total of 107 GW of wind and PV capacity globally, promising an increase of ~10% in their capacity. In this podcast, I briefly cover the following issues: why do we need to support renewables and what are advantages of using auctions? What are main challenges with auctions? I also talk about non-realization penalties, implications of having investors who bid based on the real option value, and finally remuneration scheme trade-offs.
About Ali Darudi
Ali Darudi is a postdoctoral researcher at the Research Center for Sustainable Energy and Water Management (FoNEW), University of Basel, Switzerland. His main areas of research are renewable support policy design, market design for a decarbonized electricity sector, and electric mobility. He has also been involved in carrying out resource adequacy studies for the Swiss Federal Office of Energy. Appreciating the challenges of working in a multidisciplinary field such as the energy sector, he complemented his bachelor's and master's degrees in Electrical Engineering with a PhD in Energy Economics, hoping to further bridge different aspects of the sector.