Promoting Renewable Energy through Auctions : The Case of Brazil
This knowledge note singles out auctions as an important mechanism that has been implemented in a growing number of countries in recent decades. It features a case study of auctions designed to promote the generation of electricity from renewable s...
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| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/06/19670593/promoting-renewable-energy-through-auctions-case-brazil http://hdl.handle.net/10986/18675 |
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okr-10986-186752021-06-14T10:23:07Z Promoting Renewable Energy through Auctions : The Case of Brazil Elizondo Azuela, Gabriela Barroso, Luiz Cunha, Gabriel ALLOCATION ALLOCATION OF RISK APPROACH AUCTION AUCTION DESIGN AUCTION MECHANISM AUCTIONS AVERAGE PRICE BALANCE BIOMASS BLACK CARBON BOTTOM LINE BURNING COAL CAPACITY FACTOR CAPACITY FACTORS CARBON CARBON DIOXIDE CLEANER ENERGY CLIMATE CLIMATE CHANGE CLIMATE VARIABILITY CO CO2 COAL COMBUSTION COMPETITIVE PRICES CONVENTIONAL ENERGY CUSTOMER SERVICE DEMAND FOR ELECTRICITY DISTRIBUTION OF ENERGY ECONOMIC DEVELOPMENT ELECTRICITY ELECTRICITY MARKET EMISSIONS ENERGY AUCTIONS ENERGY CONSUMERS ENERGY CONSUMPTION ENERGY DATA ENERGY GENERATION ENERGY INDUSTRIES ENERGY MIX ENERGY POLICIES ENERGY SHORTAGES ENERGY SYSTEMS FOSSIL FOSSIL FUELS GENERATION GENERATION CAPACITY GENERATORS GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS GREENHOUSE GAS INVENTORY GREENHOUSE GASES HEAT HEAT GENERATION HYDROPOWER HYDROPOWER GENERATION INCOME INCREASE IN CAPACITY INTERNATIONAL ENERGY INVESTMENT CLIMATE INVESTMENT COSTS LOWER PRICE LOWER PRICES LOWER TARIFFS MARGINAL PRICE METHANE MITIGATING CLIMATE CHANGE OIL PENALTIES PETROLEUM PIPELINE POLICY MAKERS PORTFOLIO POWER CAPACITY POWER INDUSTRY POWER PURCHASE POWER SECTOR PRICE CEILING PRICE REDUCTIONS REGULATORY FRAMEWORK RENEWABLE ENERGY RENEWABLE ENERGY DEVELOPMENT RENEWABLE ENERGY SUPPLY RENEWABLE PORTFOLIO STANDARD RENEWABLE SOURCES RENEWABLE SOURCES OF ENERGY SOURCE OF ENERGY SPOT PRICES TARIFF STRUCTURE TOTAL GREENHOUSE TOTAL GREENHOUSE GAS TRANSMISSION INFRASTRUCTURE TRANSMISSION LINES TRANSMISSION SYSTEM TURBINE COMPONENTS UNCERTAINTIES UTILITIES WIND WIND CAPACITY WIND DEVELOPMENT WIND ENERGY WIND EQUIPMENT WIND FARM WIND FARMS WIND GENERATION WIND PLANTS WIND POWER WIND POWER CAPACITY WIND POWER DEVELOPMENT WIND POWER INDUSTRY WIND POWER PLANTS WIND PRODUCERS WIND PROJECTS WIND SECTOR WIND SITES WIND TURBINE This knowledge note singles out auctions as an important mechanism that has been implemented in a growing number of countries in recent decades. It features a case study of auctions designed to promote the generation of electricity from renewable sources in Brazil. The Brazilian experience with wind energy auctions illustrates that even carefully designed policies often must be reconsidered in the light of a complex and changing environment. Many considerations need to be taken into account to ensure competitive prices while also delivering the required renewable energy supply. This case study is interesting, because Brazil's initial success with developing wind capacity had unforeseen consequences. Challenges introduced in the first stage of wind power development had to be solved in the second. The chief challenges were (i) the Brazilian system had to be able to balance supply and demand more accurately; (ii) investors were overoptimistic about the amount of electricity able to be generated; and (iii) the government's arrangements for coordinating the planning of generation and transmission left too little room for error. The benefits offered to the auctioned plants were reduced, as was government involvement in planning and coordinating transmission expansion. The key lesson from this case study is that existing policies should be challenged and revised in response to a changing environment. 2014-06-17T15:42:17Z 2014-06-17T15:42:17Z 2014-06-13 Brief http://documents.worldbank.org/curated/en/2014/06/19670593/promoting-renewable-energy-through-auctions-case-brazil http://hdl.handle.net/10986/18675 English en_US Live Wire, 2014/13 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research Latin America & Caribbean Brazil |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ALLOCATION ALLOCATION OF RISK APPROACH AUCTION AUCTION DESIGN AUCTION MECHANISM AUCTIONS AVERAGE PRICE BALANCE BIOMASS BLACK CARBON BOTTOM LINE BURNING COAL CAPACITY FACTOR CAPACITY FACTORS CARBON CARBON DIOXIDE CLEANER ENERGY CLIMATE CLIMATE CHANGE CLIMATE VARIABILITY CO CO2 COAL COMBUSTION COMPETITIVE PRICES CONVENTIONAL ENERGY CUSTOMER SERVICE DEMAND FOR ELECTRICITY DISTRIBUTION OF ENERGY ECONOMIC DEVELOPMENT ELECTRICITY ELECTRICITY MARKET EMISSIONS ENERGY AUCTIONS ENERGY CONSUMERS ENERGY CONSUMPTION ENERGY DATA ENERGY GENERATION ENERGY INDUSTRIES ENERGY MIX ENERGY POLICIES ENERGY SHORTAGES ENERGY SYSTEMS FOSSIL FOSSIL FUELS GENERATION GENERATION CAPACITY GENERATORS GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS GREENHOUSE GAS INVENTORY GREENHOUSE GASES HEAT HEAT GENERATION HYDROPOWER HYDROPOWER GENERATION INCOME INCREASE IN CAPACITY INTERNATIONAL ENERGY INVESTMENT CLIMATE INVESTMENT COSTS LOWER PRICE LOWER PRICES LOWER TARIFFS MARGINAL PRICE METHANE MITIGATING CLIMATE CHANGE OIL PENALTIES PETROLEUM PIPELINE POLICY MAKERS PORTFOLIO POWER CAPACITY POWER INDUSTRY POWER PURCHASE POWER SECTOR PRICE CEILING PRICE REDUCTIONS REGULATORY FRAMEWORK RENEWABLE ENERGY RENEWABLE ENERGY DEVELOPMENT RENEWABLE ENERGY SUPPLY RENEWABLE PORTFOLIO STANDARD RENEWABLE SOURCES RENEWABLE SOURCES OF ENERGY SOURCE OF ENERGY SPOT PRICES TARIFF STRUCTURE TOTAL GREENHOUSE TOTAL GREENHOUSE GAS TRANSMISSION INFRASTRUCTURE TRANSMISSION LINES TRANSMISSION SYSTEM TURBINE COMPONENTS UNCERTAINTIES UTILITIES WIND WIND CAPACITY WIND DEVELOPMENT WIND ENERGY WIND EQUIPMENT WIND FARM WIND FARMS WIND GENERATION WIND PLANTS WIND POWER WIND POWER CAPACITY WIND POWER DEVELOPMENT WIND POWER INDUSTRY WIND POWER PLANTS WIND PRODUCERS WIND PROJECTS WIND SECTOR WIND SITES WIND TURBINE |
| spellingShingle |
ALLOCATION ALLOCATION OF RISK APPROACH AUCTION AUCTION DESIGN AUCTION MECHANISM AUCTIONS AVERAGE PRICE BALANCE BIOMASS BLACK CARBON BOTTOM LINE BURNING COAL CAPACITY FACTOR CAPACITY FACTORS CARBON CARBON DIOXIDE CLEANER ENERGY CLIMATE CLIMATE CHANGE CLIMATE VARIABILITY CO CO2 COAL COMBUSTION COMPETITIVE PRICES CONVENTIONAL ENERGY CUSTOMER SERVICE DEMAND FOR ELECTRICITY DISTRIBUTION OF ENERGY ECONOMIC DEVELOPMENT ELECTRICITY ELECTRICITY MARKET EMISSIONS ENERGY AUCTIONS ENERGY CONSUMERS ENERGY CONSUMPTION ENERGY DATA ENERGY GENERATION ENERGY INDUSTRIES ENERGY MIX ENERGY POLICIES ENERGY SHORTAGES ENERGY SYSTEMS FOSSIL FOSSIL FUELS GENERATION GENERATION CAPACITY GENERATORS GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS GREENHOUSE GAS INVENTORY GREENHOUSE GASES HEAT HEAT GENERATION HYDROPOWER HYDROPOWER GENERATION INCOME INCREASE IN CAPACITY INTERNATIONAL ENERGY INVESTMENT CLIMATE INVESTMENT COSTS LOWER PRICE LOWER PRICES LOWER TARIFFS MARGINAL PRICE METHANE MITIGATING CLIMATE CHANGE OIL PENALTIES PETROLEUM PIPELINE POLICY MAKERS PORTFOLIO POWER CAPACITY POWER INDUSTRY POWER PURCHASE POWER SECTOR PRICE CEILING PRICE REDUCTIONS REGULATORY FRAMEWORK RENEWABLE ENERGY RENEWABLE ENERGY DEVELOPMENT RENEWABLE ENERGY SUPPLY RENEWABLE PORTFOLIO STANDARD RENEWABLE SOURCES RENEWABLE SOURCES OF ENERGY SOURCE OF ENERGY SPOT PRICES TARIFF STRUCTURE TOTAL GREENHOUSE TOTAL GREENHOUSE GAS TRANSMISSION INFRASTRUCTURE TRANSMISSION LINES TRANSMISSION SYSTEM TURBINE COMPONENTS UNCERTAINTIES UTILITIES WIND WIND CAPACITY WIND DEVELOPMENT WIND ENERGY WIND EQUIPMENT WIND FARM WIND FARMS WIND GENERATION WIND PLANTS WIND POWER WIND POWER CAPACITY WIND POWER DEVELOPMENT WIND POWER INDUSTRY WIND POWER PLANTS WIND PRODUCERS WIND PROJECTS WIND SECTOR WIND SITES WIND TURBINE Elizondo Azuela, Gabriela Barroso, Luiz Cunha, Gabriel Promoting Renewable Energy through Auctions : The Case of Brazil |
| geographic_facet |
Latin America & Caribbean Brazil |
| relation |
Live Wire, 2014/13 |
| description |
This knowledge note singles out
auctions as an important mechanism that has been implemented
in a growing number of countries in recent decades. It
features a case study of auctions designed to promote the
generation of electricity from renewable sources in Brazil.
The Brazilian experience with wind energy auctions
illustrates that even carefully designed policies often must
be reconsidered in the light of a complex and changing
environment. Many considerations need to be taken into
account to ensure competitive prices while also delivering
the required renewable energy supply. This case study is
interesting, because Brazil's initial success with
developing wind capacity had unforeseen consequences.
Challenges introduced in the first stage of wind power
development had to be solved in the second. The chief
challenges were (i) the Brazilian system had to be able to
balance supply and demand more accurately; (ii) investors
were overoptimistic about the amount of electricity able to
be generated; and (iii) the government's arrangements
for coordinating the planning of generation and transmission
left too little room for error. The benefits offered to the
auctioned plants were reduced, as was government involvement
in planning and coordinating transmission expansion. The key
lesson from this case study is that existing policies should
be challenged and revised in response to a changing environment. |
| format |
Brief |
| author |
Elizondo Azuela, Gabriela Barroso, Luiz Cunha, Gabriel |
| author_facet |
Elizondo Azuela, Gabriela Barroso, Luiz Cunha, Gabriel |
| author_sort |
Elizondo Azuela, Gabriela |
| title |
Promoting Renewable Energy through Auctions : The Case of Brazil |
| title_short |
Promoting Renewable Energy through Auctions : The Case of Brazil |
| title_full |
Promoting Renewable Energy through Auctions : The Case of Brazil |
| title_fullStr |
Promoting Renewable Energy through Auctions : The Case of Brazil |
| title_full_unstemmed |
Promoting Renewable Energy through Auctions : The Case of Brazil |
| title_sort |
promoting renewable energy through auctions : the case of brazil |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/06/19670593/promoting-renewable-energy-through-auctions-case-brazil http://hdl.handle.net/10986/18675 |
| _version_ |
1764442474217996288 |