Auctions, as a competitive and market-based mechanism, are on the verge of becoming a prevailing feature in support policies for renewable energy in Europe. A comprehensive assessment of auctions and their suitability for renewable support in Europe is urgently needed to facilitate their successful design and cost-efficient implementation. Auctions have the potential to significantly improve the performance of renewable electricity support in Europe, but there are potential pitfalls and difficulties to be avoided. AURES combines dedicated, detailed and target-oriented analysis of auctions and their interactions with other energy policy mechanisms and markets with capacity building of policy makers and market participants. The project will identify and evaluate suitable auction design options and their effects under different market conditions using tailored theoretical, empirical, experimental, and model-based approaches, and so develop best practices and policy recommendations for future auction design. Building on worldwide experiences with auctions in energy policy and other industries and on close cooperation with ongoing auction implementation cases in Europe, a strong knowledge base will be developed, enabling policy makers and market participants to make informed decisions. This knowledge base will be processed in a flexible policy support tool that provides policy makers with tailor-made information suited to their specific situation and policy preferences. By facilitating an intense and continuous stakeholder dialogue and by establishing a knowledge sharing network via workshops, webinars, bilateral meetings, and expert consultations, the project will serve as capacity building platform. The project consortium consists of eight renowned public institutions and private firms representing seven European countries and includes some of the leading energy policy experts in Europe, with an impressive track record of successful research and coordination projects.

Building on the insights of the recently finalized AURES project, AURES II investigates auction design options in more detail to determine their policy performance depending on different of policy objectives and give recommendations on their use. We apply a multi-methodological approach, including literature review, theoretical analysis, case studies, surveys, and empirical and quantitative methods such as econometric analysis and model simulations. The project expands the empirical base created in AURES in several directions. It continues the monitoring of ongoing and planned auction schemes. Case studies will now be complemented by a comprehensive online auction database, and quantitative analysis of how auction design features affect auction performance. The effects of auctions are further explored in two directions: (i) Developments in RES sector value chains and innovation processes in reaction to auctions, and (ii) Changes in financing patterns of RES projects in reaction to certain auction design specifications. AURES II will inform currently ongoing auction-related policy debates: (i) Challenges of cross-border openings of auctions; (ii) the question of technology-neutrality, i.e. of combining two or more RES-E technologies in one auction; and (iii) future challenges, including the necessity for and requirements towards auctions due to changing electricity markets, generation patterns, and other framework conditions such as actor diversity. The multi-methodological approach is accompanied by a strong involvement of relevant stakeholders including policy makers and industry representatives. The project builds upon and expands the strong network from AURES, allowing policy makers and industry to exchange expectations, experiences and ideas. This active dialogue allows stakeholder to learn from best practice and facilitates capacity building across borders in Europe. AURES II contributes to the EC’s communication activities in the area of RES auction design.