Vista Analyse has advised the Ministry of Petroleum and Energy on auctions for offshore wind
Vista Analyse has, together with Guidehouse, advised the Ministry of Petroleum and Energy on the implementation of the forthcoming auction for offshore wind at Sørlige Nordsjø II. This advice is now out on a public consultation.
Based on Vista Analyse's advice, the Ministry of Petroleum and Energy proposes that the support scheme should be a two-sided contract for difference (CfD), with an annual reference period. A two-sided CfD means that the operator receives the difference between the market price (the reference price) and the CfD-price when the market price is lower than the CfD-price, while the operator pays the difference when the market price is above the CfD-price. This support model relieves market risk for the operator and reduces uncertainty in the auction. An annual reference period has been chosen to give the operator incentives to adapt production to changes in price within this year.
Vista Analyse has further recommended that the auction be conducted as an Anglo-Dutch auction. This means that open bidding rounds are first conducted with the participation of all qualified bidders. Then, the two bidders with the highest bids in the open bidding rounds are given the opportunity to make a final sealed bid.
The report from Vista Analyse can be read in their entirety here.