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.

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

Report by Irena