Brussels – A new study from the EU-funded AURES project has recommended that EU States strengthen the entry requirements for organisations that wish to bid to supply for renewable energy in order to ensure that suppliers can fulfill their commitments.
Renewable energy auctions, where countries set out a required energy volume, asking producers to bid to supply it, have been promoted by the European Union over feed-in tariffs, as they are believed to be more cost effective. However, the AURES study shows that States are failing to manage these auctions effectively.
The project examined auction systems in eight EU states (Denmark, France, Germany, Ireland, Italy, the Netherlands, Portugal, and the UK), and has warned that economic penalties are not sufficient to ensure that suppliers deliver the energy that they pledge to. Instead, the report argues that countries should have stricter tender conditions, including requiring building permits from renewable producers to show they have permission to build new facilities.
However, states are also urged to avoid overly strict criteria that could deter renewable energy producers.
Click to read the AURES report, ‘Auctions for Renewable Energy Support: Lessons Learnt from International Experiences’.