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Renewable Energy Auctions: Analysing 2016

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Renewable Energy Auctions: Analysing 2016

25th January 2017

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At least 67 countries had used auctions for renewable energy contracts by mid-2016, up from less than 10 in 2005. The forthcoming report from the International Renewable Energy Agency (IRENA) – of which this summary provides a preview – provides key updates on this crucial mechanism for price discovery and market development.

Average contract prices fell to USD 50 per megawatt-hour (MWh) for solar and USD 40/MWh for wind power in 2016, compared to USD 250/MWh and USD 85/MWh, respectively, in 2010. Chile, Mexico, Morocco and the United Arab Emirates achieved record price lows with solar and wind auctions in 2016.

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Along with falling technology costs, policy support and improved access to finance have helped drive accelerating renewable energy development.

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