IDEAS home Printed from https://ideas.repec.org/p/enp/wpaper/eprg2312.html
   My bibliography  Save this paper

Multi-objective auctions for utility-scale solar battery systems: lessons for ASEAN and East Asia

Author

Listed:
  • Natsuko Toba
  • Tooraj Jamasb
  • Luiz Maurer
  • Anupama Sen

Abstract

Auctions are an increasingly popular means of competitively promoting and procuring renewable energy to meet energy, social, and climate change objectives. To succeed, the technology designs need to accommodate technological progress, declining costs, and increasing Environmental, Social and Governance (ESG) demand. This analysis examines international experiences with large-scale solar photovoltaic (PV) and battery energy storage systems (BESS) auctions, which may be useful for East and Southeast Asia. It revisits auctions' theoretical and conceptual frameworks while concentrating on the ESG aspect from the perspective of such key stakeholders as investors, government, bidders, and communities, regarding efficient allocations of risks, costs, and benefits. It then relates this framework to real-world practices and international evidence on solar PV with and without BESS. The analysis shows that integrating ESG in auction designs and business models is possible and can benefit business and sustainable development. This analysis’ focus on the ESG and solar PV plus BESS in auctions are nearly non-existent in the existing academic literature according to the review by del Río and Kiefer in Energy Policy 173 (2023).
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Natsuko Toba & Tooraj Jamasb & Luiz Maurer & Anupama Sen, 2023. "Multi-objective auctions for utility-scale solar battery systems: lessons for ASEAN and East Asia," Working Papers EPRG2312, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
  • Handle: RePEc:enp:wpaper:eprg2312
    as

    Download full text from publisher

    File URL: https://www.jbs.cam.ac.uk/wp-content/uploads/2023/12/eprg-wp2312.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lawrence M. Ausubel & Paul Milgrom, 2004. "The Lovely but Lonely Vickrey Auction," Discussion Papers 03-036, Stanford Institute for Economic Policy Research.
    2. Cramton, Peter & Stoft, Steven, 2008. "Forward reliability markets: Less risk, less market power, more efficiency," Utilities Policy, Elsevier, vol. 16(3), pages 194-201, September.
    3. Côté, Elizabeth & Đukan, Mak & Pons-Seres de Brauwer, Cristian & Wüstenhagen, Rolf, 2022. "The price of actor diversity: Measuring project developers’ willingness to accept risks in renewable energy auctions," Energy Policy, Elsevier, vol. 163(C).
    4. Bustos-Salvagno, Javier, 2015. "Bidding behavior in the Chilean electricity market," Energy Economics, Elsevier, vol. 51(C), pages 288-299.
    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. Diniz, Bruno Andrade & Szklo, Alexandre & Tolmasquim, Maurício T. & Schaeffer, Roberto, 2023. "Delays in the construction of power plants from electricity auctions in Brazil," Energy Policy, Elsevier, vol. 175(C).
    7. Haufe, Marie-Christin & Ehrhart, Karl-Martin, 2018. "Auctions for renewable energy support – Suitability, design, and first lessons learned," Energy Policy, Elsevier, vol. 121(C), pages 217-224.
    8. Maureen Lackner & Steven Koller & Jonathan R Camuzeaux, 2019. "Policy Brief—Using Lessons from Reverse Auctions for Renewables to Deliver Energy Storage Capacity: Guidance for Policymakers," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(1), pages 140-148.
    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. Fleck, Ann-Katrin & Anatolitis, Vasilios, 2023. "Achieving the objectives of renewable energy policy – Insights from renewable energy auction design in Europe," Energy Policy, Elsevier, vol. 173(C).
    2. Tolmasquim, Maurício T. & de Barros Correia, Tiago & Addas Porto, Natália & Kruger, Wikus, 2021. "Electricity market design and renewable energy auctions: The case of Brazil," Energy Policy, Elsevier, vol. 158(C).
    3. Matthäus, David, 2020. "Designing effective auctions for renewable energy support," Energy Policy, Elsevier, vol. 142(C).
    4. Jung, Jihyeok & Song, Chan-Oi & Lee, Deok-Joo & Yoon, Kiho, 2024. "Optimal energy procurement with long-term photovoltaic energy contracts considering generation uncertainty: A two-dimensional auction approach," Applied Energy, Elsevier, vol. 356(C).
    5. Diniz, Bruno Andrade & Szklo, Alexandre & Tolmasquim, Maurício T. & Schaeffer, Roberto, 2023. "Delays in the construction of power plants from electricity auctions in Brazil," Energy Policy, Elsevier, vol. 175(C).
    6. Dahlke, Steven & Sterling, John & Meehan, Colin, 2019. "Policy and market drivers for advancing clean energy," OSF Preprints hsbry, Center for Open Science.
    7. Bishop Ratz, Heidi & Cleary, Kathryne, 2021. "Experience with Competitive Procurements and Centralized Resource Planning to Advance Clean Electricity," RFF Working Paper Series 21-01, Resources for the Future.
    8. Leusin, Matheus Eduardo & Uriona Maldonado, Mauricio & Herrera, Milton M., 2024. "Exploring the influence of Brazilian project cancellation mechanisms on new wind power generation," Renewable Energy, Elsevier, vol. 221(C).
    9. Bose, A.S. & Sarkar, S., 2019. "India's e-reverse auctions (2017–2018) for allocating renewable energy capacity: An evaluation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 762-774.
    10. Anatolitis, Vasilios & Azanbayev, Alina & Fleck, Ann-Katrin, 2022. "How to design efficient renewable energy auctions? Empirical insights from Europe," Energy Policy, Elsevier, vol. 166(C).
    11. del Río, Pablo & Kiefer, Christoph P., 2023. "Academic research on renewable electricity auctions: Taking stock and looking forward," Energy Policy, Elsevier, vol. 173(C).
    12. Enikő Kácsor, 2021. "Modelling Bidding Behaviour on German Photovoltaic Auctions," Energies, MDPI, vol. 14(2), pages 1-32, January.
    13. Fleance George Cocker, 2025. "Mixes of Policy Instruments for the Full Decarbonisation of Energy Systems: A Review," Energies, MDPI, vol. 18(1), pages 1-64, January.
    14. Ehrhart, Karl-Martin & Ott, Marion & Seifert, Stefan & Wang, Runxi, 2024. "Combinatorial auctions for renewable energy — potentials and challenges," Energy Policy, Elsevier, vol. 186(C).
    15. Nicolosi, S., 2010. "Wind power integration, negative prices and power system flexibility - An empirical analysis of extreme events in Germany," MPRA Paper 31834, University Library of Munich, Germany.
    16. Wrede, Matthias, 2022. "The influence of state politics on solar energy auction results," Energy Policy, Elsevier, vol. 168(C).
    17. Peter Cramton, 2009. "Innovation and Market Design," NBER Chapters, in: Innovation Policy and the Economy, Volume 9, pages 113-137, National Bureau of Economic Research, Inc.
    18. Gumber, Anurag & Zana, Riccardo & Steffen, Bjarne, 2024. "A global analysis of renewable energy project commissioning timelines," Applied Energy, Elsevier, vol. 358(C).
    19. Kruger, Wikus, 2022. "A quiet transition: The role of Namibia's state-owned power utility in the renewable energy auction program," Utilities Policy, Elsevier, vol. 78(C).
    20. Osorio, A.F. & Ortega, Santiago & Arango-Aramburo, Santiago, 2016. "Assessment of the marine power potential in Colombia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 966-977.

    More about this item

    Keywords

    Renewable energy; solar power; battery storage; auction design;
    All these keywords.

    JEL classification:

    • D0 - Microeconomics - - General
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • L0 - Industrial Organization - - General
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:enp:wpaper:eprg2312. 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: Ruth Newman (email available below). General contact details of provider: https://edirc.repec.org/data/jicamuk.html .

    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.