Electricity Auctions : An Overview of Efficient Practices

This report assesses the potential of electricity contract auctions as a procurement option for the World Bank's client countries. It focuses on the role of auctions of electricity contracts designed to expand and retain existing generation ca...

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Main Authors: Maurer, Luiz T. A., Barroso, Luiz A.
Format: Publication
Language:English
Published: World Bank 2012
Subjects:
WEB
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000356161_20110818032547
http://hdl.handle.net/10986/2346
id okr-10986-2346
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGGREGATE DEMAND
ARBITRAGE
AUCTION
AUCTION DESIGN
AUCTION DESIGNS
AUCTION MECHANISM
AUCTION MECHANISMS
AUCTION PRICE
AUCTION SYSTEM
AUCTIONS
AVERAGE PRICE
BANDWIDTH
BARRIERS TO ENTRY
BEST PRACTICES
BID PRICE
BIDDING
BIDDING PROCESS
BIDS
BUDGET CONSTRAINTS
BUSINESS MODEL
BUSINESS MODELS
BUSINESSES
BUYER
BUYERS
CALL OPTIONS
CAPACITY EXPANSION
CAPACITY PAYMENTS
CAPTIVE CUSTOMERS
CAPTIVE MARKET
CLIENT COUNTRIES
COMMODITY
COMMON DENOMINATORS
COMPETITION IN ELECTRICITY
COMPETITIVE AUCTION
COMPETITIVE AUCTIONS
COMPETITIVE BID
COMPETITIVE BIDDING
COMPETITIVE PRICE
COMPETITIVE PROCUREMENT
COMPETITIVENESS
COMPLEX INSTRUMENTS
CONCESSION
CONCESSIONS
CONTINGENT LIABILITIES
CONTRACTUAL TERMS
COPYRIGHT
COPYRIGHT CLEARANCE
COPYRIGHT CLEARANCE CENTER
COST STRUCTURES
DECENTRALIZATION
DEMAND CURVE
DEMAND FUNCTION
DEMAND GROWTH
DEREGULATION
DEVELOPING COUNTRIES
DISSEMINATION OF INFORMATION
DISTRIBUTION BUSINESSES
DISTRIBUTION COMPANIES
DIVESTITURE
DUTCH AUCTION
DUTCH AUCTIONS
E-MAIL
ECONOMIES OF SCALE
ELECTRIC SECTOR
ELECTRICITY
ELECTRICITY GENERATION
ELECTRICITY INDUSTRY
ELECTRICITY MARKET
ELECTRICITY SECTOR
ELECTRICITY SUPPLY
END-USER
END-USERS
ENERGY AUCTIONS
ENERGY PRICE
ENERGY PROCUREMENT
ENFORCEMENT OF CONTRACTS
EXCESS SUPPLY
EXPANSION OF GENERATION CAPACITY
EXPOSURE
FAIR
FORWARD CONTRACT
FUTURE CONTRACTS
GENERATION
GENERATION CAPACITY
GENERATION EXPANSION
GENERATORS
GOVERNMENT CONTRACTS
GOVERNMENT GUARANTEES
GOVERNMENT INVESTMENTS
GOVERNMENT POLICY
GOVERNMENT SUPPORT
GROWTH RATES
IMAGES
INCOME
INDEPENDENT POWER PRODUCERS
INDIVIDUAL MARKET
INDIVIDUAL MARKETS
INFORMATION DISCLOSURE
INFORMATION TECHNOLOGY
INSTALLATION
INSTITUTIONAL FRAMEWORKS
INSTRUMENT
INTERNATIONAL BANK
JURISDICTIONS
LACK OF TRANSPARENCY
LEVELS OF COMPETITION
LIBERALIZATION
LICENSES
LIMITED ACCESS
LIQUID MARKETS
LOAD CURVE
LOAD SHAPE
LOWER PRICES
MARGINAL COST
MARKET CONCENTRATION
MARKET DESIGN
MARKET FORCES
MARKET MECHANISM
MARKET MECHANISMS
MARKET PARTICIPANTS
MARKET POWER
MARKET REQUIREMENTS
MARKET VALUE
MARKETPLACE
MATERIAL
MIDDLE-INCOME COUNTRIES
MOBILE SERVICES
NEW PRODUCTS
OFFER PRICE
OPEN AUCTION
OPPORTUNITY COSTS
OUTSOURCING
PAYMENT GUARANTEES
PHYSICAL ASSETS
POLICY FORMULATION
PORTFOLIO
POTENTIAL INVESTORS
POWER CONTRACTS
POWER MARKETS
POWER PLANTS
POWER PURCHASE
POWER PURCHASE AGREEMENTS
POWER PURCHASE COSTS
POWER SECTOR
POWER SECTOR REFORM
PRICE AUCTION
PRICE BIDS
PRICE COMPETITION
PRICE DECREASES
PRICE DISCOVERY
PRICE ELASTICITY
PRICE INFORMATION
PRIVATE INFORMATION
PRIVATE SECTOR
PROCUREMENT
PROCUREMENT PROCESS
PROCUREMENT PROCESSES
PURCHASING
QUERIES
RADIO
RADIO SPECTRUM
REGIONAL POWER
REGULATOR
REGULATORS
REGULATORY FRAMEWORK
REGULATORY OVERSIGHT
REGULATORY REQUIREMENTS
RELIABILITY
RENEWABLE ENERGY
RESERVE
RESULT
RESULTS
RETAIL
REVERSE AUCTION
REVERSE AUCTIONS
RISK AVERSION
RULE OF LAW
SALE
SALES
SAVINGS
SITES
SPOT ELECTRICITY
SPREAD
STATE UTILITIES
SUBSTITUTES
SUPPLIERS
SUPPLY CHAIN
SUPPLY CONTRACTS
SUPPLY CURVE
SUPPLY FUNCTION
SUSTAINABLE DEVELOPMENT
TELECOMMUNICATIONS
TELECOMMUNICATIONS COMPANIES
TELEPHONE
TENDERS
TIME FRAMES
TRADING
TRANSACTION
TRANSACTION COSTS
TRANSMISSION
TRANSMISSION ASSETS
TRANSMISSION FACILITIES
TRANSPARENCY
TRANSPARENT PROCUREMENT
TRANSPARENT PROCUREMENT PROCESS
TRANSPARENT WAY
UNIFORM PRICE
UNIFORM PRICE AUCTION
USES
UTILITIES
UTILITY COMPANIES
VALUATIONS
VERTICAL INTEGRATION
WEB
WEB SITE
WHOLESALE MARKET
WHOLESALE MARKETS
WINNING BIDDERS
spellingShingle AGGREGATE DEMAND
ARBITRAGE
AUCTION
AUCTION DESIGN
AUCTION DESIGNS
AUCTION MECHANISM
AUCTION MECHANISMS
AUCTION PRICE
AUCTION SYSTEM
AUCTIONS
AVERAGE PRICE
BANDWIDTH
BARRIERS TO ENTRY
BEST PRACTICES
BID PRICE
BIDDING
BIDDING PROCESS
BIDS
BUDGET CONSTRAINTS
BUSINESS MODEL
BUSINESS MODELS
BUSINESSES
BUYER
BUYERS
CALL OPTIONS
CAPACITY EXPANSION
CAPACITY PAYMENTS
CAPTIVE CUSTOMERS
CAPTIVE MARKET
CLIENT COUNTRIES
COMMODITY
COMMON DENOMINATORS
COMPETITION IN ELECTRICITY
COMPETITIVE AUCTION
COMPETITIVE AUCTIONS
COMPETITIVE BID
COMPETITIVE BIDDING
COMPETITIVE PRICE
COMPETITIVE PROCUREMENT
COMPETITIVENESS
COMPLEX INSTRUMENTS
CONCESSION
CONCESSIONS
CONTINGENT LIABILITIES
CONTRACTUAL TERMS
COPYRIGHT
COPYRIGHT CLEARANCE
COPYRIGHT CLEARANCE CENTER
COST STRUCTURES
DECENTRALIZATION
DEMAND CURVE
DEMAND FUNCTION
DEMAND GROWTH
DEREGULATION
DEVELOPING COUNTRIES
DISSEMINATION OF INFORMATION
DISTRIBUTION BUSINESSES
DISTRIBUTION COMPANIES
DIVESTITURE
DUTCH AUCTION
DUTCH AUCTIONS
E-MAIL
ECONOMIES OF SCALE
ELECTRIC SECTOR
ELECTRICITY
ELECTRICITY GENERATION
ELECTRICITY INDUSTRY
ELECTRICITY MARKET
ELECTRICITY SECTOR
ELECTRICITY SUPPLY
END-USER
END-USERS
ENERGY AUCTIONS
ENERGY PRICE
ENERGY PROCUREMENT
ENFORCEMENT OF CONTRACTS
EXCESS SUPPLY
EXPANSION OF GENERATION CAPACITY
EXPOSURE
FAIR
FORWARD CONTRACT
FUTURE CONTRACTS
GENERATION
GENERATION CAPACITY
GENERATION EXPANSION
GENERATORS
GOVERNMENT CONTRACTS
GOVERNMENT GUARANTEES
GOVERNMENT INVESTMENTS
GOVERNMENT POLICY
GOVERNMENT SUPPORT
GROWTH RATES
IMAGES
INCOME
INDEPENDENT POWER PRODUCERS
INDIVIDUAL MARKET
INDIVIDUAL MARKETS
INFORMATION DISCLOSURE
INFORMATION TECHNOLOGY
INSTALLATION
INSTITUTIONAL FRAMEWORKS
INSTRUMENT
INTERNATIONAL BANK
JURISDICTIONS
LACK OF TRANSPARENCY
LEVELS OF COMPETITION
LIBERALIZATION
LICENSES
LIMITED ACCESS
LIQUID MARKETS
LOAD CURVE
LOAD SHAPE
LOWER PRICES
MARGINAL COST
MARKET CONCENTRATION
MARKET DESIGN
MARKET FORCES
MARKET MECHANISM
MARKET MECHANISMS
MARKET PARTICIPANTS
MARKET POWER
MARKET REQUIREMENTS
MARKET VALUE
MARKETPLACE
MATERIAL
MIDDLE-INCOME COUNTRIES
MOBILE SERVICES
NEW PRODUCTS
OFFER PRICE
OPEN AUCTION
OPPORTUNITY COSTS
OUTSOURCING
PAYMENT GUARANTEES
PHYSICAL ASSETS
POLICY FORMULATION
PORTFOLIO
POTENTIAL INVESTORS
POWER CONTRACTS
POWER MARKETS
POWER PLANTS
POWER PURCHASE
POWER PURCHASE AGREEMENTS
POWER PURCHASE COSTS
POWER SECTOR
POWER SECTOR REFORM
PRICE AUCTION
PRICE BIDS
PRICE COMPETITION
PRICE DECREASES
PRICE DISCOVERY
PRICE ELASTICITY
PRICE INFORMATION
PRIVATE INFORMATION
PRIVATE SECTOR
PROCUREMENT
PROCUREMENT PROCESS
PROCUREMENT PROCESSES
PURCHASING
QUERIES
RADIO
RADIO SPECTRUM
REGIONAL POWER
REGULATOR
REGULATORS
REGULATORY FRAMEWORK
REGULATORY OVERSIGHT
REGULATORY REQUIREMENTS
RELIABILITY
RENEWABLE ENERGY
RESERVE
RESULT
RESULTS
RETAIL
REVERSE AUCTION
REVERSE AUCTIONS
RISK AVERSION
RULE OF LAW
SALE
SALES
SAVINGS
SITES
SPOT ELECTRICITY
SPREAD
STATE UTILITIES
SUBSTITUTES
SUPPLIERS
SUPPLY CHAIN
SUPPLY CONTRACTS
SUPPLY CURVE
SUPPLY FUNCTION
SUSTAINABLE DEVELOPMENT
TELECOMMUNICATIONS
TELECOMMUNICATIONS COMPANIES
TELEPHONE
TENDERS
TIME FRAMES
TRADING
TRANSACTION
TRANSACTION COSTS
TRANSMISSION
TRANSMISSION ASSETS
TRANSMISSION FACILITIES
TRANSPARENCY
TRANSPARENT PROCUREMENT
TRANSPARENT PROCUREMENT PROCESS
TRANSPARENT WAY
UNIFORM PRICE
UNIFORM PRICE AUCTION
USES
UTILITIES
UTILITY COMPANIES
VALUATIONS
VERTICAL INTEGRATION
WEB
WEB SITE
WHOLESALE MARKET
WHOLESALE MARKETS
WINNING BIDDERS
Maurer, Luiz T. A.
Barroso, Luiz A.
Electricity Auctions : An Overview of Efficient Practices
relation World Bank Study
description This report assesses the potential of electricity contract auctions as a procurement option for the World Bank's client countries. It focuses on the role of auctions of electricity contracts designed to expand and retain existing generation capacity. It is not meant to be a 'how-to' manual. Rather, it highlights some major issues and options that need to be taken into account when a country considers moving towards competitive electricity procurement through the introduction of electricity auctions. Auctions have played an important role in the effort to match supply and demand. Ever since the 1990s, the use of long-term contract auctions to procure new generation capacity, notably from private sector suppliers, has garnered increased affection from investors, governments, and multilateral agencies in general, as a means to achieve a competitive and transparent procurement process while providing certainty of supply for the medium to long term. However, the liberalization of electricity markets and the move from single-buyer procurement models increased the nature of the challenge facing system planners in their efforts to ensure an adequate and secure supply of electricity in the future at the best price. While auctions as general propositions are a means to match supply with demand in a cost-effective manner, they can also be and have been used to meet a variety of goals.
format Publications & Research :: Publication
author Maurer, Luiz T. A.
Barroso, Luiz A.
author_facet Maurer, Luiz T. A.
Barroso, Luiz A.
author_sort Maurer, Luiz T. A.
title Electricity Auctions : An Overview of Efficient Practices
title_short Electricity Auctions : An Overview of Efficient Practices
title_full Electricity Auctions : An Overview of Efficient Practices
title_fullStr Electricity Auctions : An Overview of Efficient Practices
title_full_unstemmed Electricity Auctions : An Overview of Efficient Practices
title_sort electricity auctions : an overview of efficient practices
publisher World Bank
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000356161_20110818032547
http://hdl.handle.net/10986/2346
_version_ 1764385298372886528
spelling okr-10986-23462021-04-23T14:02:01Z Electricity Auctions : An Overview of Efficient Practices Maurer, Luiz T. A. Barroso, Luiz A. AGGREGATE DEMAND ARBITRAGE AUCTION AUCTION DESIGN AUCTION DESIGNS AUCTION MECHANISM AUCTION MECHANISMS AUCTION PRICE AUCTION SYSTEM AUCTIONS AVERAGE PRICE BANDWIDTH BARRIERS TO ENTRY BEST PRACTICES BID PRICE BIDDING BIDDING PROCESS BIDS BUDGET CONSTRAINTS BUSINESS MODEL BUSINESS MODELS BUSINESSES BUYER BUYERS CALL OPTIONS CAPACITY EXPANSION CAPACITY PAYMENTS CAPTIVE CUSTOMERS CAPTIVE MARKET CLIENT COUNTRIES COMMODITY COMMON DENOMINATORS COMPETITION IN ELECTRICITY COMPETITIVE AUCTION COMPETITIVE AUCTIONS COMPETITIVE BID COMPETITIVE BIDDING COMPETITIVE PRICE COMPETITIVE PROCUREMENT COMPETITIVENESS COMPLEX INSTRUMENTS CONCESSION CONCESSIONS CONTINGENT LIABILITIES CONTRACTUAL TERMS COPYRIGHT COPYRIGHT CLEARANCE COPYRIGHT CLEARANCE CENTER COST STRUCTURES DECENTRALIZATION DEMAND CURVE DEMAND FUNCTION DEMAND GROWTH DEREGULATION DEVELOPING COUNTRIES DISSEMINATION OF INFORMATION DISTRIBUTION BUSINESSES DISTRIBUTION COMPANIES DIVESTITURE DUTCH AUCTION DUTCH AUCTIONS E-MAIL ECONOMIES OF SCALE ELECTRIC SECTOR ELECTRICITY ELECTRICITY GENERATION ELECTRICITY INDUSTRY ELECTRICITY MARKET ELECTRICITY SECTOR ELECTRICITY SUPPLY END-USER END-USERS ENERGY AUCTIONS ENERGY PRICE ENERGY PROCUREMENT ENFORCEMENT OF CONTRACTS EXCESS SUPPLY EXPANSION OF GENERATION CAPACITY EXPOSURE FAIR FORWARD CONTRACT FUTURE CONTRACTS GENERATION GENERATION CAPACITY GENERATION EXPANSION GENERATORS GOVERNMENT CONTRACTS GOVERNMENT GUARANTEES GOVERNMENT INVESTMENTS GOVERNMENT POLICY GOVERNMENT SUPPORT GROWTH RATES IMAGES INCOME INDEPENDENT POWER PRODUCERS INDIVIDUAL MARKET INDIVIDUAL MARKETS INFORMATION DISCLOSURE INFORMATION TECHNOLOGY INSTALLATION INSTITUTIONAL FRAMEWORKS INSTRUMENT INTERNATIONAL BANK JURISDICTIONS LACK OF TRANSPARENCY LEVELS OF COMPETITION LIBERALIZATION LICENSES LIMITED ACCESS LIQUID MARKETS LOAD CURVE LOAD SHAPE LOWER PRICES MARGINAL COST MARKET CONCENTRATION MARKET DESIGN MARKET FORCES MARKET MECHANISM MARKET MECHANISMS MARKET PARTICIPANTS MARKET POWER MARKET REQUIREMENTS MARKET VALUE MARKETPLACE MATERIAL MIDDLE-INCOME COUNTRIES MOBILE SERVICES NEW PRODUCTS OFFER PRICE OPEN AUCTION OPPORTUNITY COSTS OUTSOURCING PAYMENT GUARANTEES PHYSICAL ASSETS POLICY FORMULATION PORTFOLIO POTENTIAL INVESTORS POWER CONTRACTS POWER MARKETS POWER PLANTS POWER PURCHASE POWER PURCHASE AGREEMENTS POWER PURCHASE COSTS POWER SECTOR POWER SECTOR REFORM PRICE AUCTION PRICE BIDS PRICE COMPETITION PRICE DECREASES PRICE DISCOVERY PRICE ELASTICITY PRICE INFORMATION PRIVATE INFORMATION PRIVATE SECTOR PROCUREMENT PROCUREMENT PROCESS PROCUREMENT PROCESSES PURCHASING QUERIES RADIO RADIO SPECTRUM REGIONAL POWER REGULATOR REGULATORS REGULATORY FRAMEWORK REGULATORY OVERSIGHT REGULATORY REQUIREMENTS RELIABILITY RENEWABLE ENERGY RESERVE RESULT RESULTS RETAIL REVERSE AUCTION REVERSE AUCTIONS RISK AVERSION RULE OF LAW SALE SALES SAVINGS SITES SPOT ELECTRICITY SPREAD STATE UTILITIES SUBSTITUTES SUPPLIERS SUPPLY CHAIN SUPPLY CONTRACTS SUPPLY CURVE SUPPLY FUNCTION SUSTAINABLE DEVELOPMENT TELECOMMUNICATIONS TELECOMMUNICATIONS COMPANIES TELEPHONE TENDERS TIME FRAMES TRADING TRANSACTION TRANSACTION COSTS TRANSMISSION TRANSMISSION ASSETS TRANSMISSION FACILITIES TRANSPARENCY TRANSPARENT PROCUREMENT TRANSPARENT PROCUREMENT PROCESS TRANSPARENT WAY UNIFORM PRICE UNIFORM PRICE AUCTION USES UTILITIES UTILITY COMPANIES VALUATIONS VERTICAL INTEGRATION WEB WEB SITE WHOLESALE MARKET WHOLESALE MARKETS WINNING BIDDERS This report assesses the potential of electricity contract auctions as a procurement option for the World Bank's client countries. It focuses on the role of auctions of electricity contracts designed to expand and retain existing generation capacity. It is not meant to be a 'how-to' manual. Rather, it highlights some major issues and options that need to be taken into account when a country considers moving towards competitive electricity procurement through the introduction of electricity auctions. Auctions have played an important role in the effort to match supply and demand. Ever since the 1990s, the use of long-term contract auctions to procure new generation capacity, notably from private sector suppliers, has garnered increased affection from investors, governments, and multilateral agencies in general, as a means to achieve a competitive and transparent procurement process while providing certainty of supply for the medium to long term. However, the liberalization of electricity markets and the move from single-buyer procurement models increased the nature of the challenge facing system planners in their efforts to ensure an adequate and secure supply of electricity in the future at the best price. While auctions as general propositions are a means to match supply with demand in a cost-effective manner, they can also be and have been used to meet a variety of goals. 2012-03-19T09:04:32Z 2012-03-19T09:04:32Z 2011-07-25 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000356161_20110818032547 978-0-8213-8822-8 http://hdl.handle.net/10986/2346 English World Bank Study CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank Publications & Research :: Publication Publications & Research :: Publication