Auctions for the support of renewable energy in the UK: updated results and lessons learnt
Woodman, B; Fitch-Roy, O
Date: 17 October 2019
Publisher
AURES II
Related links
Abstract
Background to this study.
This report serves to restate and update the findings of AURES report D4.1-UK published in March 2016
(Fitch-Roy and Woodman 2016)1
. While the fundamental design of the UK auctions system remains largely
unchanged, substantial shifts in the policy context and the additional experience and data from two ...
Background to this study.
This report serves to restate and update the findings of AURES report D4.1-UK published in March 2016
(Fitch-Roy and Woodman 2016)1
. While the fundamental design of the UK auctions system remains largely
unchanged, substantial shifts in the policy context and the additional experience and data from two further
auction processes (one completed, another in progress at the time of writing) warrant an updated evaluation
and report.
The UK has been a frontrunner in the use of RES auctions. From early experiences with the Non Fossil-Fuel
Obligation (NFFO) auctions in the 1990s to the current auction system, first announced in 2011, the use of
competitive allocation mechanisms has been central to the UK’s approach to supporting new renewable
electricity generation projects.
However, the use and design of renewable auctions remain a source of policy debate and discussion in the
UK. For example, the potential for a combination of auction dynamics and the application of a cap on the
volume of ‘fuelled’ renewable technologies led to higher than necessary support costs being awarded to
some projects has been the subject of an enquiry by the national audit office (NAO 2018).
This remainder of this report adopts the following structure:
Section 2 provides an updated overview of the UK electricity sector
Section 3 outlines the key features of the UK RES auction system, including recent rule changes
Section 4 updates our earlier evaluation of the programme in light of recent auctions
Section 5 concludes
Engineering
Faculty of Environment, Science and Economy
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