- EBRD and EnCS have jointly issued policy guidelines for member countries to conduct auctions for the deployment of renewable energy
- Participating nations need to develop a clear strategy outlining long term and short term plans to conduct the auctions
- Clear timelines and communication must be ensured to boost investor confidence and timely completion of auctioned capacity
- The idea is to bring down the cost of energy in participating nations and also help them diversify their energy resources
The European Bank for Reconstruction and Development (EBRD) has issued policy guidelines for renewable energy auction processes along with the Energy Community Secretariat (EnCS).
The guidelines are applicable for countries that are both parties to the Energy Community Treaty and EBRD countries of operation. This inlcludes Albania, Bosnia and Herzegovina, Former Yugoslav Republic of Macedonia, Georgia, Kosovo, Moldova, Montenegro, Serbia, Ukraine.
The purpose of issuing these guidelines is to set a common position of the EnCS and the EBRD on key design principles that must be adopted to competitively set the level and select recipients of public support for renewable energy. With these guidelines, the implementing agencies want to ensure that timely deployment of renewable energy is carried out on credible bids and also ensure transparency and objectivity along with boosting investor confidence.
“One of the most significant recent policy developments is the growing popularity of renewable energy auctions,” said Adnan Amin, Director-General of the International Renewable Energy Agency (IRENA). “Countries are turning to auctions as an instrument of choice to reach a competitive price for renewable energy electricity while achieving socio-economic and environmental benefits. These policy guidelines provide a critical design tool for countries as they seek to accelerate sustainable and affordable renewable energy solutions.”
The guidelines, prepared in collaboration with IRENA, cover four broad areas, namely:
- Overall framework for the competitive process;
- Choices relating to what is being procured;
- Choices relating to the selection process; and
- Mechanism for the delivery of RE support
The creators of the policy guidelines want policymakers to develop and publish a strategy for the development of renewable energy, including long term plans for the next 10 years, and short term plans identifying auctions to be held in the next 2 to 3 years. Clear timelines should be published in advance. A comprehensive communication strategy is be developed like setting up a dedicated website for the purpose of renewable energy auctions.
Details about the policy guidelines are available on EBRD’s website.
The Energy Community is an international organisation, which brings together the European Union and its neighbours to create an integrated pan-European energy market. Its main objective is to extend the EU internal energy market rules and principles to countries in South East Europe, the Black Sea region and beyond on the basis of a legally binding framework.