Auction Design for Variable Renewables in Latin America

IET – International Energy Transition GmbH assisted a country in Latin American in assessing and implementing an auction based procurement mechanism for wind energy and solar PV. The regulatory authorities were informed about the key design features of auctions, including the general auction structure, contract structure of PPAs, financial flows and offtake arrangement, auction schedule and auction volume, performance and transmission risk allocation, as well as pre-qualification requirement and parameters for bid assessment. The project was financed by the Clean Energy Solution Center and executed in cooperation with the National Renewable Energy Laboratory (NREL) and the United States Agency for International Development (USAID).