气候变化领域集成服务门户(CCPortal): The impact of auctions on financing conditions and cost of capital for wind energy projects

CCPortal

DOI	10.1016/j.enpol.2021.112197
	The impact of auctions on financing conditions and cost of capital for wind energy projects
	Đukan M.; Kitzing L.
发表日期	2021
ISSN	03014215
卷号	152
英文摘要	The recent rise of auctions to allocate support payments for renewable energy projects creates new uncertainties during project development and causes a decrease in support levels. We investigate the effects of the shift to auctioning on costs of capital (CoC) and financing conditions through semi-structured and focus group interviews with 40 experts in onshore and offshore wind project development and financing in Europe. We find that auctions create a competitive environment that pressures the industry into accepting higher risks and lower returns. Banks have reduced debt margins, while large investors decreased hurdle rates and equity returns, despite additional risks from auctions, such as uncertainty about future award prices, allocation and qualification risks. The risk of being awarded support and incurring sunk costs makes smaller bidders averse to participating in auctions. Competitive bidding may also decrease secured revenues and increase offtaker risks, especially when combined with sliding premiums. Despite increased price risk, the competitive pressure driven by project sponsors, seems to lower financing costs and hurdle rates, thus decreasing CoC for offshore projects. To reduce negative impacts on CoC and financing, policymakers can minimise additional risks, by adopting remuneration schemes that stabilise revenues, and supporting smaller actors through removing participation hurdles. © 2021 The Authors
关键词	Auctions design Cost of capital Financing conditions Investor risk Renewable energy auctions
英文关键词	Commerce; Energy policy; Investments; Offshore oil well production; Wind power; Competitive bidding; Competitive environment; Competitive pressure; Offshore wind projects; Project development; Remuneration schemes; Renewable energy projects; Wind energy projects; Costs; alternative energy; auction; cost analysis; investment; risk assessment; wind power; Europe
语种	英语
来源期刊	Energy Policy
文献类型	期刊论文
条目标识符	http://gcip.llas.ac.cn/handle/2XKMVOVA/205081
作者单位	Energy Economics and System Analysis (EESA) Section, Sustainability Division, Department of Technology, Management and Economics & Society, Market & Policy (SMP) Section, DTU Wind Energy, Technical University of Denmark, Lyngby, Roskilde, Denmark; Society, Market & Policy (SMP) Section, DTU Wind Energy, Technical University of Denmark, Roskilde, Denmark
推荐引用方式 GB/T 7714	Đukan M.,Kitzing L.. The impact of auctions on financing conditions and cost of capital for wind energy projects[J],2021,152.
APA	Đukan M.,&Kitzing L..(2021).The impact of auctions on financing conditions and cost of capital for wind energy projects.Energy Policy,152.
MLA	Đukan M.,et al."The impact of auctions on financing conditions and cost of capital for wind energy projects".Energy Policy 152(2021).