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Auctions of power purchase contracts as a price-setting mechanism for wind energy are proving to be sharp tools for driving down cost. But sharp tools need handling with care
RENEWABLE ENERGY AUCTIONS
Compared with auctions of renewables, which have driven prices so low that cost is no longer a big barrier to the energy transition, fixed power prices have become a blunt tool for leveraging renewables into mature energy markets. But auctions come with their own set of problems and pitfalls. Policymakers must learn to avoid them. ...
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