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Policy Instrument Supply and Demand: How the Renewable Electricity Auction Took over the World

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  • Oscar W Fitch-Roy

    (Energy Policy Group, University of Exeter, UK)

  • David Benson

    (University of Exeter)

  • Bridget Woodman

    (Energy Policy Group, University of Exeter, UK)

Abstract

The selection and design of renewable electricity support instruments is an important part of European Union (EU) energy policy and central to the governance of the Energy Union. In 2014, the European Commission published updated guidelines for state aid that effectively mandate the EU-wide implementation of auctions for allocating revenue support to commercial scale renewable electricity generation. This article argues that the RES auction’s rapid ascent towards dominance is explained by a coincidence of an activist interpretation of EU state aid law creating demand for knowledge about the instrument and the emergence of a ready source of supply from a burgeoning community of a RES auction specialists and experts. Knowledge gained through EU-wide implementation of auctions further adds to supply of auctions expertise among the community. The implications of positive feedback between instrument demand and the growing supply of knowledge about an instrument reinforces the importance of critical engagement between policymakers and policy experts.

Suggested Citation

  • Oscar W Fitch-Roy & David Benson & Bridget Woodman, 2019. "Policy Instrument Supply and Demand: How the Renewable Electricity Auction Took over the World," Politics and Governance, Cogitatio Press, vol. 7(1), pages 81-91.
    • Handle: RePEc:cog:poango:v:7:y:2019:i:1:p:81-91
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    Cited by:

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    2. Ćetković, Stefan & Buzogány, Aron, 2020. "Between markets, politics and path-dependence: Explaining the growth of solar and wind power in six Central and Eastern European countries," Energy Policy, Elsevier, vol. 139(C).
    3. Dahlke, Steven & Sterling, John & Meehan, Colin, 2019. "Policy and market drivers for advancing clean energy," OSF Preprints hsbry, Center for Open Science.
    4. Hastings-Simon, Sara & Leach, Andrew & Shaffer, Blake & Weis, Tim, 2022. "Alberta's Renewable Electricity Program: Design, results, and lessons learned," Energy Policy, Elsevier, vol. 171(C).
    5. Mac Clay, Pablo & Börner, Jan & Sellare, Jorge, 2022. "Institutional and macroeconomic stability mediate the effect of auctions on renewable energy capacity," Discussion Papers 329643, University of Bonn, Center for Development Research (ZEF).
    6. del Río, Pablo & Kiefer, Christoph P., 2023. "Academic research on renewable electricity auctions: Taking stock and looking forward," Energy Policy, Elsevier, vol. 173(C).
    7. Nihit Goyal & Michael Howlett & Namrata Chindarkar, 2020. "Who coupled which stream(s)? Policy entrepreneurship and innovation in the energy–water nexus in Gujarat, India," Public Administration & Development, Blackwell Publishing, vol. 40(1), pages 49-64, February.
    8. Geßner, Daniel, 2023. "Performance of Renewable Energy Policies - Evidence from Germany's Transition to Auctions," W.E.P. - Würzburg Economic Papers 105, University of Würzburg, Department of Economics.
    9. Grashof, Katherina & Berkhout, Volker & Cernusko, Robert & Pfennig, Maximilian, 2020. "Long on promises, short on delivery? Insights from the first two years of onshore wind auctions in Germany," Energy Policy, Elsevier, vol. 140(C).
    10. Kacper Szulecki & Dag Herald Claes, 2019. "Towards Decarbonization: Understanding EU Energy Governance," Politics and Governance, Cogitatio Press, vol. 7(1), pages 1-5.
    11. Valenzuela, Jose Maria, 2023. "State ownership in liberal economic governance? De-risking private investment in the electricity sector in Mexico," World Development Perspectives, Elsevier, vol. 31(C).
    12. Strunz, Sebastian & Lehmann, Paul & Gawel, Erik, 2021. "Analyzing the ambitions of renewable energy policy in the EU and its Member States," Energy Policy, Elsevier, vol. 156(C).

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