A tendering system by which contracts to construct and operate specific projects or fixed quantities of renewable capacity are awarded.  Bidding for renewable power capacity can be done at the national or sub-national levels.  By encouraging competition between utilities the goal of the tendering system is to reduce the price of supplying renewable energy. 

Public bidding has provided the means for allocating contracts for a variety of renewables technologies in the last two decades and is currently in use in over 20 countries worldwide.   A detailed list of countries can be found here.

Success Story

In response to the projected decrease in the total share of renewables in electricity generation the Brazilian Agencia Nacional de Energia Eletrica (ANEE) instituted the countries first ever tendering system solely for wind power in 2009.  This auction was developed in addition to the PROFINA program which has existed in Brazil since 2002.  The auction awarded contracts for 71 different wind energy projects distributed over 5 regions.  The combined capacity of these projects will reach an estimated 1,800 MW.  The total volume of wind power contracts awarded in this first round of bidding is a positive sign and suggests the expansion of a large sector of renewable power potential in Brazil.  Since the first round of bidding in 2009 two subsequent bidding rounds have been implemented awarding 141 total projects and bringing the total capacity contracted to 3,850 MW as of August 2010.

Sources: GWEC Global Wind Report 2009

Further Reading