Many countries already make use of the tool of alternative energy auctions. The energy economist Marijke Welisch of the Energy Economics Group at the Vienna University of Technology explored how such energy auctions work and how they can be managed to ensure optimal results. Awarded the Hannspeter Winter Prize of the Vienna University of Technology for her work on this.
To proceed by offering the lowest prices is not the best strategy at energy auctions. Other variables such as the reliability of supply are also significant factors. From a political perspective, a successful energy auction must initially define which goals are to be pursued. “The round of bidding takes place in different intervals in the various countries. One should not look at them individually but remember that the results of a bidding round will have consequences for the next round”, Marijke Welisch explains. “The objective is continuity, and an expansion of renewable energy, which in turn benefits the entire system”, she concludes.