Auction approaches of long-term contracts to ensure generation investment in electricity markets: Lessons from the Brazilian and Chilean experiences

Moreno, Rodrigo; Barroso, L.A.; Rudnick, H.; Mocarquer, Sebastian; Bezerra, B.

doi:10.1016/j.enpol.2010.05.026

Cited by 62 publications

(29 citation statements)

References 18 publications

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“…The auctions are carried out for resource adequacy purposes and standardized contracts are awarded for electricity delivery beginning three or five years after the bid selection. The auctions are held centrally-that is, electric distributors determine their demands for future delivery, and these estimates are aggregated into a large market block indicating new electricity requirements (Moreno et al 2010a Brazil's auctions are held as standard financial forward auctions, wherein generators bid an energy price (effectively in $/MWh) to supply a specified quantity of firm energy of firm energy (from both new and existing generators). During this period, more than 20,000 MW of new capacity was acquired for delivery between 2008 and 2014, and the average contract price for new energy was US$76/MWh (Moreno et al 2010b).…”

Section: Renewable Energy Auctions In Brazilmentioning

confidence: 99%

“…During this period, more than 20,000 MW of new capacity was acquired for delivery between 2008 and 2014, and the average contract price for new energy was US$76/MWh (Moreno et al 2010b). for the 32 Contracts need to be covered by adequacy guarantees in the form of "firm energy" or "firm capacity" certificates or any other credible measure of adequacy (Moreno et al 2010a). …”

Section: Renewable Energy Auctions In Brazilmentioning

confidence: 99%

“…On the whole, some analysts have found Brazil's auction mechanism to be effective at producing competitively priced contracts and to be reasonably efficient, especially since bids are submitted on energy price only (Moreno et al 2010a). Contracts are lasting and provide revenues essential for developers to obtain financing (Moreno et al 2010a).…”

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confidence: 99%

“…This phase is known as the classification phase, as it aims to provide price discovery. In the second round, generators bid a final sealed price, which cannot be higher than the price disclosed by the classification round (Moreno et al 2010a). …”

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confidence: 99%

“…The auctions are conducted in two rounds: a descending price clock auction and a final pay-asbid round (Moreno et al 2010a). In the first round, the auctioneer initiates the auction with a high-energy price that is anticipated to create excess supply.…”

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confidence: 99%

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Renewable energy auctions in sub‐Saharan Africa: Comparing the South African, Ugandan, and Zambian Programs

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Sub-Saharan Africa desperately needs more electricity. Recent years have seen private investment in renewable energy projects breaking through in the region, primarily driven by well-designed and implemented auction programs. We review three renewable energy auction programs in the region to improve our understanding of the auction design and implementation elements that have enabled this important transition: the South African Renewable Energy Independent Power Producers Procurement Program (REIPPPP); the GET FiT solar facility in Uganda; and the first round of the Scaling Solar program in Zambia. Our analysis shows that a well-designed and implemented program that adequately deals with risks for both the procuring authorities and investors is able to deliver good investment and price outcomes in sub-Saharan Africa.

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Power system stability in the transition to a low carbon grid: A techno‐economic perspective on challenges and opportunities

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Increasing power system stability challenges are being witnessed worldwide, while transitioning toward low‐carbon grids with a high‐share of power electronic converter (PEC)‐interfaced renewable energy sources (RESs) and distributed energy resources (DERs). Concurrently, new technologies and operational strategies are being implemented or proposed to tackle these challenges. Since electricity grids are deregulated in many jurisdictions, such technologies need to be integrated within a market framework, which is often a challenge in itself due to inevitable regulatory delays in updating grid codes and market rules. It is also highly desirable to ensure that an economically feasible optimal technology mix is integrated in the power system, without imposing additional burdens on electricity consumers. This article provides a comprehensive overview of emerging power system stability challenges posed by PEC‐interfaced RES and DER, particularly related to low inertia and low system strength conditions, while also introducing new technologies that can help tackle these challenges and discussing the need for suitable techno‐economic considerations to integrate them into system and market operation. As a key point, the importance of recognizing the complexity of system services to guarantee stability in low‐carbon grids is emphasized, along with the need to carefully integrate new grid codes and market mechanisms in order to exploit the full benefits of emerging technologies in the transition toward ultra‐low carbon futures. This article is categorized under: Energy Systems Economics > Economics and Policy Energy Systems Analysis > Systems and Infrastructure Energy and Development > Systems and Infrastructure

show abstract

Auction approaches of long-term contracts to ensure generation investment in electricity markets: Lessons from the Brazilian and Chilean experiences

Cited by 62 publications

References 18 publications

Innovative Feed-In Tariff Designs that Limit Policy Costs

Innovative Feed-In Tariff Designs that Limit Policy Costs

Renewable energy auctions in sub‐Saharan Africa: Comparing the South African, Ugandan, and Zambian Programs

Power system stability in the transition to a low carbon grid: A techno‐economic perspective on challenges and opportunities

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