A Global Wind Energy Industry Perspective on Integrating Non-Price Criteria into Auction Frameworks
Following extensive member consultation, GWEC is releasing its latest position paper, “A global wind energy industry perspective on integrating non-price criteria into auction frameworks”. This timely publication offers a view of evolving auction strategies and the considerations for non-price criteria (NPC) in wind energy procurement, with a particular focus on guidance for emerging wind markets.
Key Insights Include:
- Context: Analysis of the dynamic cost environment for renewable energy procurement, and the importance of accelerating wind installations to meet energy and climate goals. Ultimately, the industry needs stable and ambitious policy environments that offer reasonable returns on investment to achieve scalability.
- Scope of NPC: Auctions are primarily designed for transparent, efficient and fair price discovery. NPC expands the scope of auctions by procuring projects that are efficient in pricing and deliver additional value. It must be clearly understood that NPC should incorporate the associated costs in delivering this value in auction pricing.
- Practical Guidelines: The paper provides a set of 10 recommendations for governments considering the application of NPC in tender schemes, across general principles, application and evaluation of NPC.
There is an imperative to rapidly scale up wind energy capacity to meet the global goal of tripling renewable energy by 2030, agreed at COP28 in 2023. In this context, this paper supports policymakers in making careful and informed decisions regarding the adoption of NPC, to ensure that procurement frameworks can support large-scale, long-term and sustainable deployment of wind energy.
