Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The role of auctions in the energy transition

45 views

Published on

IRENA

  • Be the first to comment

  • Be the first to like this

The role of auctions in the energy transition

  1. 1. 1 The role of auctions in the energy transition
  2. 2. The transition in the power sector 2 Global capacity addition, 2001-2017 Source: IRENA data (MW) 0 20 000 40 000 60 000 80 000 100 000 120 000 140 000 160 000 180 000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Hydropower Wind Solar PV Bioenergy Other Conventional
  3. 3. The transition benefits The benefits associated to the limiting of the global temperature rise to below 2°C, in terms of annual health and reduced externalities, outweigh incremental costs by a factor of 2 to 5 in 2050. 3 Source: IRENA (2018), Global Energy Transition, a roadmap to 2050
  4. 4. Distribution of human resources required along the value chain for the development of a 50 MW solar PV plant, by activity 4
  5. 5. Distribution of human resources required along the value chain for the development of a 50 MW onshore wind plant, by activity 5
  6. 6. Materials needed to develop a 1 MW Silicon-based solar PV plant (tonnes) 6
  7. 7. Materials needed to develop a 50 MW wind farm (tonnes) 7
  8. 8. 8 Power sector: RE policies are evolving A growing number of countries (both in the developed and in the developing world) are implementing auctions, although usually combined with other instruments.
  9. 9. Trends in renewable energy policies 9
  10. 10. Filling the gaps 10
  11. 11. Recent cost evolution 11
  12. 12. Solar & Wind: LCOE/Auction Price Evolution
  13. 13. Auctions potential for real price discovery 13 • Solar energy was contracted at a global average price of almost USD 250/MWh in 2010, compared with the average price of USD 50/MWh in 2016. • Wind average prices have also fallen from USD 80/MWh in 2010 down to USD 40/MWh in 2016. Estimated installation costs of utility-scale PV projects: global versus auction winners, 2010-2016 Average prices resulting from auctions, 2010-2016 • The average installation costs of projects awarded from auctions are consistently lower than global average installation costs.
  14. 14. 14 Updated renewable energy policy classification
  15. 15. 15

×