Optimal Design of Auctions for Ground-mounted Photovoltaic Facilities

Cooperation and Funding: Bundesverband der Energie- und Wasserwirtschaft (BDEW)

In the amendment of the Renewable Energy Act in 2014 the government decided to determine the height of promotion for renewable energies by competitive auctions. In a pilot phase this project was restricted to ground-mounted photovoltaic facilities, however, in the medium term it should be applied to all renewable energies. For this purpose, the chair of energy economics developed an optimal auction design for ground-mounted photovoltaic facilities which was based on a choice of suitable criteria. The results were summarized in a report which was used by the BDEW to contribute to the political discussion. Central issues of the analysis were the intensity of competition, the pricing rule, the risks of the auction participants, and the realisation probability of projects. In addition, further aspects were considered, such as the conservation of the diversity of market players and a possible European harmonization of the renewable energies in the future.