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Multi-Objective Auctions for Utility-Scale Solar-Battery Systems: The Case of ASEAN and East Asia

Author

Listed:
  • Toba, Natsuko

    (International Finance Corporation, World Bank Group, US)

  • Jamasb, Tooraj

    (Department of Economics, Copenhagen Business School)

  • Maurer, Luiz

    (LM Engineering and Consulting, Richmond, US)

  • Sen, Anupama

    (Smith School of Enterprise and the Environment, University of Oxford, UK)

Abstract

Globally, auctions are increasingly popular to competitively promote and procure renewable energy technologies to meet energy, social, and climate change objectives. To do so, auction designs need to accommodate technological progress, declining costs, and increasing demand for Environmental, Social and Governance (ESG). This chapter focuses on auctions of large scale solar photovoltaic (PV) and battery energy storage system (BESS) in Southeast and East Asia. It revisits the theoretical and conceptual frameworks of auctions while focusing on the ESG component from the perspective of key stakeholders, such as investors, government, bidders, and communities regarding efficient allocations of risks, costs, and benefits. The chapter then relates this framework to real-world practices and international evidence on solar PV as well as those without BESS. The analysis shows that integrating ESG in the auction designs and business models is possible and could benefit business and sustainable development.

Suggested Citation

  • Toba, Natsuko & Jamasb, Tooraj & Maurer, Luiz & Sen, Anupama, 2023. "Multi-Objective Auctions for Utility-Scale Solar-Battery Systems: The Case of ASEAN and East Asia," Working Papers 3-2023, Copenhagen Business School, Department of Economics, revised 10 Feb 2023.
    • Handle: RePEc:hhs:cbsnow:2023_003
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    References listed on IDEAS

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    1. Haufe, Marie-Christin & Ehrhart, Karl-Martin, 2018. "Auctions for renewable energy support – Suitability, design, and first lessons learned," Energy Policy, Elsevier, vol. 121(C), pages 217-224.
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    More about this item

    Keywords

    Renewable energy; Solar power; Battery storage; Auction design;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • L00 - Industrial Organization - - General - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General

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