LAUSR

Abstract As a relatively high-cost gap technology, concentrating solar power (CSP) still needs to be supported if it is to contribute significantly to the energy transition. Within this context, auctions have emerged worldwide as a relevant instrument for the promotion of renewable energy in general, given their alleged advantages in terms of cost-effectiveness and lower support costs, and they could also be used to support CSP. In turn, it is well known that the success of any auction depends on the choice of its design elements. The aim of this paper is to identify the most appropriate design elements to promote CSP through auctions. An empirical analysis of CSP auctions in five countries is carried out in order to draw some lessons on the pros and cons of different design elements which should be considered specifically in auctions for CSP deployment. Our results show that, depending on the policy goals of the government, some design elements may make more sense than others. If effectiveness in deployment is the main goal, then valuation of dispatchability, strict prequalification requirements, site specific auctions, coordination between the auction and administrative procedures, long enough lead times and construction times are particularly recommendable. If minimization of support costs is the government's priority then price-only auctions, low prequalification requirements, absence of local content requirements, on-site auctions, long deadlines, long PPA duration, provision of resource measurements and multiple rounds would be preferable. Finally, if local economic development is a main goal, then local content rules may make sense, as long as there is a minimum manufacturing capacity in the country. Trade-offs between policy goals are unavoidable when choosing design elements in CSP auctions and should be taken into account and, if possible, mitigated.