How to implement locational criteria in renewable auctions
A practical guide
Introducing locational criteria to renewable auctions leads to more renewable energy integrated into the grid, less redispatch and lower consumer costs. The impact of location can be evaluated using standard modelling tools: A grid model-ling exercise is sufficient to derive the system contribution of a given renewable project. Points can then be awarded by group-ing candidate projects based on their benefit to the system. To ensure a robust evaluation of the locational criterion, the grid modelling exercise should ideally take place at European level, cover several decades of climate data, as well as a time span that covers considers the entire lifetime of the assets in question. Transparency and competition are key to maximize the benefits from locational renewable auctions. Calculated locational impact should be published early, before the auction takes place. In this way project developers know where to build to win the auction. At the same time, this ensures that renewables are being developed where they benefit the system most.
THOMASSEN Georg;
FUHRMANEK Andreas;
2025-07-03
European Commission
JRC141683
https://publications.jrc.ec.europa.eu/repository/handle/JRC141683,
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