IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v110y2017icp394-402.html
   My bibliography  Save this article

Putting renewable energy auctions into action – An agent-based model of onshore wind power auctions in Germany

Author

Listed:
  • Anatolitis, Vasilios
  • Welisch, Marijke

Abstract

The following analysis looks into auctions for renewable energy, specifically onshore wind power in Germany. Following an agent-based modeling approach, the two most commonly applied auction pricing rules are compared (uniform and pay-as-bid) and first conclusions on outcomes are drawn for future policy design. The auctions are modeled to closely represent the auction design foreseen in the German Renewable Energy Sources Act (EEG, 2017) and replicate their parameters.

Suggested Citation

  • Anatolitis, Vasilios & Welisch, Marijke, 2017. "Putting renewable energy auctions into action – An agent-based model of onshore wind power auctions in Germany," Energy Policy, Elsevier, vol. 110(C), pages 394-402.
    • Handle: RePEc:eee:enepol:v:110:y:2017:i:c:p:394-402
    DOI: 10.1016/j.enpol.2017.08.024
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421517305189
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2017.08.024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Natalia Fabra & Nils‐Henrik Fehr & David Harbord, 2006. "Designing electricity auctions," RAND Journal of Economics, RAND Corporation, vol. 37(1), pages 23-46, March.
    2. Natalia Fabra & Nils-Henrik M. von der Fehr & David Harbord, 2006. "Designing Electricity Auctions," RAND Journal of Economics, The RAND Corporation, vol. 37(1), pages 23-46, Spring.
    3. Lawrence M. Ausubel & Peter Cramton & Marek Pycia & Marzena Rostek & Marek Weretka, 2014. "Demand Reduction and Inefficiency in Multi-Unit Auctions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(4), pages 1366-1400.
    4. Li, Gong & Shi, Jing, 2012. "Agent-based modeling for trading wind power with uncertainty in the day-ahead wholesale electricity markets of single-sided auctions," Applied Energy, Elsevier, vol. 99(C), pages 13-22.
    5. Kreiss, Jan & Ehrhart, Karl-Martin & Haufe, Marie-Christin, 2017. "Appropriate design of auctions for renewable energy support – Prequalifications and penalties," Energy Policy, Elsevier, vol. 101(C), pages 512-520.
    6. Widergren, S. & Sun, Junjie & Tesfatsion, Leigh, 2006. "Market design test environments," ISU General Staff Papers 200601010800001042, Iowa State University, Department of Economics.
    7. Iychettira, Kaveri K. & Hakvoort, Rudi A. & Linares, Pedro & de Jeu, Rob, 2017. "Towards a comprehensive policy for electricity from renewable energy: Designing for social welfare," Applied Energy, Elsevier, vol. 187(C), pages 228-242.
    8. Weidlich, Anke & Veit, Daniel, 2008. "A critical survey of agent-based wholesale electricity market models," Energy Economics, Elsevier, vol. 30(4), pages 1728-1759, July.
    9. Paul Klemperer, 2004. "Auctions: Theory and Practice," Online economics textbooks, SUNY-Oswego, Department of Economics, number auction1.
    10. Luiz T. A. Maurer & Luiz A. Barroso, 2011. "Electricity Auctions : An Overview of Efficient Practices," World Bank Publications - Books, The World Bank Group, number 2346.
    11. del Río, Pablo & Linares, Pedro, 2014. "Back to the future? Rethinking auctions for renewable electricity support," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 42-56.
    12. Derek W. Bunn and Fernando Oliveira, 2001. "An Application of Agent-based Simulation to the New Electricity Trading Arrangements of England and Wales," Computing in Economics and Finance 2001 93, Society for Computational Economics.
    13. Milgrom,Paul, 2004. "Putting Auction Theory to Work," Cambridge Books, Cambridge University Press, number 9780521536721, November.
    14. Veit, Daniel J. & Weidlich, Anke & Krafft, Jacob A., 2009. "An agent-based analysis of the German electricity market with transmission capacity constraints," Energy Policy, Elsevier, vol. 37(10), pages 4132-4144, October.
    15. Atakelty Hailu & Steven Schilizzi, 2004. "Are Auctions More Efficient Than Fixed Price Schemes When Bidders Learn?," Australian Journal of Management, Australian School of Business, vol. 29(2), pages 147-168, December.
    16. Paul Klemperer, 2004. "Auctions: Theory and Practice," Online economics textbooks, SUNY-Oswego, Department of Economics, number auction1.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dejan Trifunović & Bojan Ristić, 2013. "Multi-Unit Auctions In The Procurement Of Electricity," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 58(197), pages 47-78, April – J.
    2. Bichler, Martin & Grimm, Veronika & Kretschmer, Sandra & Sutterer, Paul, 2020. "Market design for renewable energy auctions: An analysis of alternative auction formats," Energy Economics, Elsevier, vol. 92(C).
    3. Satoru Fujishige & Zaifu Yang, 2020. "A Universal Dynamic Auction for Unimodular Demand Types: An Efficient Auction Design for Various Kinds of Indivisible Commodities," Discussion Papers 20/08, Department of Economics, University of York.
    4. Estrella Alonso & Joaquín Sánchez-Soriano & Juan Tejada, 2020. "Mixed Mechanisms for Auctioning Ranked Items," Mathematics, MDPI, vol. 8(12), pages 1-26, December.
    5. Paulo Fagandini & Ingemar Dierickx, 2023. "Computing Profit-Maximizing Bid Shading Factors in First-Price Sealed-Bid Auctions," Computational Economics, Springer;Society for Computational Economics, vol. 61(3), pages 1009-1035, March.
    6. Kaplan, Todd R. & Zamir, Shmuel, 2015. "Advances in Auctions," Handbook of Game Theory with Economic Applications,, Elsevier.
    7. Lorentziadis, Panos L., 2016. "Optimal bidding in auctions from a game theory perspective," European Journal of Operational Research, Elsevier, vol. 248(2), pages 347-371.
    8. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 541-571.
    9. Alessandra Casella & Adam B. Cox, 2018. "A Property Rights Approach to Temporary Work Visas," The Journal of Legal Studies, University of Chicago Press, vol. 47(S1), pages 195-227.
    10. Sven-Olof Fridolfsson and Thomas P. Tangeras, 2015. "Nuclear Capacity Auctions," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    11. Li, Zhen & Kuo, Ching-Chung, 2011. "Revenue-maximizing Dutch auctions with discrete bid levels," European Journal of Operational Research, Elsevier, vol. 215(3), pages 721-729, December.
    12. Ning Sun & Zaifu Yang, 2014. "An Efficient and Incentive Compatible Dynamic Auction for Multiple Complements," Journal of Political Economy, University of Chicago Press, vol. 122(2), pages 422-466.
    13. Jarl G. Kallberg & Crocker H. Liu & Adam Nowak, 2021. "An Empirical Analysis of Double Round Auctions," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(2), pages 531-555, June.
    14. Isa Hafalir & Onur Kesten & Katerina Sherstyuk & Cong Tao, 2023. "When Speed is of Essence: Perishable Goods Auctions," Working Papers 202310, University of Hawaii at Manoa, Department of Economics.
    15. Kashyap, Ravi, 2018. "Auction theory adaptations for real life applications," Research in Economics, Elsevier, vol. 72(4), pages 452-481.
    16. Sweeting, Andrew & Bhattacharya, Vivek, 2015. "Selective entry and auction design," International Journal of Industrial Organization, Elsevier, vol. 43(C), pages 189-207.
    17. Bayer, Benjamin & Berthold, Lennart & Moreno Rodrigo de Freitas, Bruno, 2018. "The Brazilian experience with auctions for wind power: An assessment of project delays and potential mitigation measures," Energy Policy, Elsevier, vol. 122(C), pages 97-117.
    18. Li, Yunan, 2017. "Approximation in mechanism design with interdependent values," Games and Economic Behavior, Elsevier, vol. 103(C), pages 225-253.
    19. Holmberg, Pär & Newbery, David, 2010. "The supply function equilibrium and its policy implications for wholesale electricity auctions," Utilities Policy, Elsevier, vol. 18(4), pages 209-226, December.
    20. Rey, Patrick & Salant, David, 2017. "Allocating essential inputs," TSE Working Papers 17-820, Toulouse School of Economics (TSE), revised Jun 2019.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:110:y:2017:i:c:p:394-402. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.