| ID | 132689 |
| Title Proper | Potentials of a reverse auction in allocating subsidies for cost-effective roof-top photovoltaic system deployment |
| Language | ENG |
| Author | Mayr, Dieter ; Schmidt, Johannes ; Schmid, Erwin |
| Publication | 2014. |
| Summary / Abstract (Note) | Photovoltaic (PV) has developed to one of the most promising technologies for renewable electricity generation. The Austrian government currently provides subsidies for roof-top PV systems through a constant, administratively determined feed-in tariff or an investment co-funding. In both subsidy schemes, applications are approved on a first-come, first-served basis. There are concerns about (i) the selection of suitable roofs for PV systems, and (ii) allocating subsidies among applicants to deploy roof-top PV systems cost-effectively. Thus we analyze the potentials of a simple discriminative first-price reverse auction application scheme. Applicants define individually the required level of subsidy and those with the lowest request for subsidies are selected. In an ex-post analysis, we evaluate the potentials of such a scheme in increasing power output and saving public spending for the federal state of Vorarlberg in Austria. Results indicate a potential increase of cumulated produced electricity between 15% and 18% in comparison to the current policy. In addition, a reverse auction-based system would lead to savings of public spending per kWh between 20% and 41%. |
| `In' analytical Note | Energy Policy Vol.69, No. ; Jun.2014: p.555-565 |
| Journal Source | Energy Policy Vol.69, No. ; Jun.2014: p.555-565 |
| Key Words | Reverse Auction ; Subsidies Allocating ; Photovoltaic System ; Cost-Effectiveness ; Renewable Energy Policy ; Feed-In Tariff - FITs ; Economic Policy ; Investment Policy ; Energy Policy |