The best experience of the world in introducing green auctions and its use in Ukraine was discussed by the Chairman of the State Agency for Energy Efficiency and Energy Saving Serhii Savchuk with experts from the International Renewable Energy Agency (IRENA), assistants of the MPs of Ukraine, representatives of the Ministry of Energy and Coal Industry, the State Agency for Energy Efficiency and Energy Saving (the Agency) and the National Investment Council.
Within the framework of the Agency-initiated webinar, IRENA specialists commended the activity of Ukraine in the development of clean energy technologies and shared the results of research on the conduct of auctions in different countries around the world.
Thus, during 20 years, more and more countries in the world have chosen auctions as one of the mechanisms for the development of clean energy. If in 2008 there were only 20 such countries, in 2018 there are more than 70.
According to experts, auctions have a number of important advantages, in particular: they ensure market transparency; stimulate the growth of competition between investors; determine the real market price for clean electricity and contribute to its reduction.
For instance, in the United Arab Emirates, throughout the two years, due to auctions, the price of electricity from solar power stations decreased from $58.5 / MWh in January 2015 to $ 24.2 / MWh in March 2017.
Apart from the price component, the parties considered all other elements of the auctions.
IRENA experts recommended that special attention be paid to the following issues when developing an effective auction model for Ukraine:
• the key goal set by the country;
• conditions for participation in auctions;
• ways to increase competition between participants and avoid abuse;
• conditions for the selection of winner of the auction;
• ways to minimize the risks of implementing projects that have won auctions.
On the outcomes of the webinar, the participants agreed on the need to summarize the recommendations by IRENA experts and to include those as proposals to the bill on auctions in Ukraine.
Also, in early 2019, it is planned to hold a large-scale workshop with the participation of IRENA experts on green auctions.