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The good, the bad, and the ugly: global renewable capacity auctions analysed

Featuring Ross McCracken and Henry Edwardes-Evans

April 01, 2015 10:15:00 EST (11:30 mins)

Increasingly, auctions are being used as a means of selling and procuring services in the electricity industry. With an auction approaching in Germany for Solar PV power, Ross McCracken and Henry Edwardes-Evans compare the German system to the auction designs of the UK and Brazil. They highlight the 'perverse results' of the recent UK auction as an effect of bids secured below the break-even prices for power plants, as well as the negative impact of 'gaming behaviour' and the importance of financial penalties to the Brazilian and German designs.

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