Governance & Policy
Renewable Energy Auction
Definition
A renewable energy auction is a competitive procurement process in which the state or a utility invites developers to bid for contracts to build renewable generation, awarding support to the lowest-priced qualifying offers. Auctions largely replaced administratively set feed-in tariffs after 2015, driving steep price discovery: solar and wind auction results in many countries undercut new fossil generation.
References
Source imported for editorial provenance.
This reference provides supporting context for how “Renewable Energy Auction” is defined and used.
Overview
How it is used
Over 100 countries have used auctions for utility-scale renewables; results are tracked by IRENA and feed levelised-cost benchmarks and policy design guidance.
Why it matters
Auctions turned renewables from subsidised niche into the cheapest new power in much of the world — the single most consequential policy design shift of the energy transition.