Renewable Energy Auctions

19 October 2022
Katie Orlandi, Paul Cardona, Rachel Northcutt, Benjamin Chee

In the United States, renewable energy currently represents more than 20% of electricity generated, a percentage that is expected to grow. Since the 1990s, NERA has continued to innovate and develop streamlined competitive bid processes with many applications related to renewable energy procurement. From assisting in product design and selecting the appropriate auction format to implementing the competitive bid process, our approach delivers solutions that meet our clients’ regulatory requirements and business objectives.

In the final installment of the Industry Economics White Paper Series, Associate Director Katie Orlandi, Senior Consultants Paul Cardona and Rachel Northcutt, and Managing Director Benjamin Chee highlight how NERA leverages industry expertise to provide robust economic analysis. The paper presents NERA’s unique approach to auction design. The authors highlight two case studies that illustrate the diversity of auction design choices and show how key elements in the design and implementation of competitive bid processes can look different depending on the context and client’s requirements. The paper also describes several building blocks to create a successful competitive bid process and presents challenges and questions that may arise.