Wednesday, August 16, 2017

Finance: Auctions Drive Down the Price of Renewable Energy - IRENA Report

Renewable Energy Auctions: Analysing 2016 (IRENA)

At least 67 countries had used auctions for renewable energy contracts by mid-2016, up from less than 10 in 2005. This auctions report from the International Renewable Energy Agency (IRENA) 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 80/MWh, respectively, in 2010. Chile, Mexico, Morocco, Peru 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.

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