Stand-alone renewable energy auctions: The case of Peru

Electrification policies are crucial to improve the welfare of rural populationsworldwide. In this context, auctions for the deployment of stand-alone solar home systems (SASHS) are an appropriate alternative to facilitate access to electricity in rural areas. The aim of this paper is to analyze the...

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Autores: Lucas Porta, Hugo, del Río, Pablo, Cabeza, Luisa F.
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2020
País:España
Institución:Universitat de Lleida (UdL)
Repositorio:Repositori Obert UdL
OAI Identifier:oai:repositori.udl.cat:10459.1/68184
Acceso en línea:https://doi.org/10.1016/j.esd.2020.01.009
http://hdl.handle.net/10459.1/68184
Access Level:acceso abierto
Palabra clave:Electrification
Off-grid
Stand-alone solar home systems
Decentralized
Auctions
Peru
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spelling Stand-alone renewable energy auctions: The case of PeruLucas Porta, Hugodel Río, PabloCabeza, Luisa F.ElectrificationOff-gridStand-alone solar home systemsDecentralizedAuctionsPeruElectrification policies are crucial to improve the welfare of rural populationsworldwide. In this context, auctions for the deployment of stand-alone solar home systems (SASHS) are an appropriate alternative to facilitate access to electricity in rural areas. The aim of this paper is to analyze the design elements and functioning of the SASHS auction in Peru in order to derive lessons for the effective and efficient design of those auctions. Based on an analytical framework developed elsewhere, this article draws on official documents and data, secondary material and interviews with stakeholders. Our results show that some design elements are particularly suitable in this regard. In contrast to renewable electricity auctions in general, for which the volume auctioned is usually set as capacity (MW) or generation (MWh), the volume of SASHS auctions should be set in terms of the number of SASHS providing an electricity service.Geographical diversity,with different auctions per region, would ensure the adoption of a minimum amount of SASHS in a given geographical area. Financial solvency, but not technical reputation, should be required. Otherwise, only the incumbents would be able to participate in the auction. The choice of technology-specific, price-only, sealed-bid, single-item auctions brings benefits in terms of economies of scale, lower support or transaction costs and a greater transparency or simplicity. A correction factor on the remuneration which accounts for the quality of the service, as applied in the Peru auction, is suitable for this type of auctions. Finally, provision of technical information, which facilitates the participation in the auction, and the implementation of a non-disclosed ceiling price are deemed appropriate. In contrast, given the lowpresence of local companies in the Peruvian PV market, the adoption of local content requirements would lead to higher support costs without significantly increasing the local development potential.The authors would like to acknowledge Mr. Julio Eisman Valdés forhis guidance and support and Mr. Mats Marquardt (Factor) for editingsupport. Dr. Cabeza would like to thank the Catalan Government forthe quality accreditation given to her research group GREiA (2017 SGR1537). GREiA is certified agent TECNIO in the category of technology de-velopers from the Government of Catalonia. This work is partially sup-ported by ICREA under the ICREA Academia programElsevier2020info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersionapplication/pdfhttps://doi.org/10.1016/j.esd.2020.01.009http://hdl.handle.net/10459.1/68184reponame:Repositori Obert UdL instname:Universitat de Lleida (UdL)InglésVersió postprint del document publicat a: https://doi.org/10.1016/j.esd.2020.01.009Energy for Sustainable Development, 2020, vol. 55, p. 151-160cc-by-nc-nd (c) International Energy Initiative, 2020info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by-nc-nd/4.0/oai:repositori.udl.cat:10459.1/681842026-06-24T12:42:17Z
dc.title.none.fl_str_mv Stand-alone renewable energy auctions: The case of Peru
title Stand-alone renewable energy auctions: The case of Peru
spellingShingle Stand-alone renewable energy auctions: The case of Peru
Lucas Porta, Hugo
Electrification
Off-grid
Stand-alone solar home systems
Decentralized
Auctions
Peru
title_short Stand-alone renewable energy auctions: The case of Peru
title_full Stand-alone renewable energy auctions: The case of Peru
title_fullStr Stand-alone renewable energy auctions: The case of Peru
title_full_unstemmed Stand-alone renewable energy auctions: The case of Peru
title_sort Stand-alone renewable energy auctions: The case of Peru
dc.creator.none.fl_str_mv Lucas Porta, Hugo
del Río, Pablo
Cabeza, Luisa F.
author Lucas Porta, Hugo
author_facet Lucas Porta, Hugo
del Río, Pablo
Cabeza, Luisa F.
author_role author
author2 del Río, Pablo
Cabeza, Luisa F.
author2_role author
author
dc.subject.none.fl_str_mv Electrification
Off-grid
Stand-alone solar home systems
Decentralized
Auctions
Peru
topic Electrification
Off-grid
Stand-alone solar home systems
Decentralized
Auctions
Peru
description Electrification policies are crucial to improve the welfare of rural populationsworldwide. In this context, auctions for the deployment of stand-alone solar home systems (SASHS) are an appropriate alternative to facilitate access to electricity in rural areas. The aim of this paper is to analyze the design elements and functioning of the SASHS auction in Peru in order to derive lessons for the effective and efficient design of those auctions. Based on an analytical framework developed elsewhere, this article draws on official documents and data, secondary material and interviews with stakeholders. Our results show that some design elements are particularly suitable in this regard. In contrast to renewable electricity auctions in general, for which the volume auctioned is usually set as capacity (MW) or generation (MWh), the volume of SASHS auctions should be set in terms of the number of SASHS providing an electricity service.Geographical diversity,with different auctions per region, would ensure the adoption of a minimum amount of SASHS in a given geographical area. Financial solvency, but not technical reputation, should be required. Otherwise, only the incumbents would be able to participate in the auction. The choice of technology-specific, price-only, sealed-bid, single-item auctions brings benefits in terms of economies of scale, lower support or transaction costs and a greater transparency or simplicity. A correction factor on the remuneration which accounts for the quality of the service, as applied in the Peru auction, is suitable for this type of auctions. Finally, provision of technical information, which facilitates the participation in the auction, and the implementation of a non-disclosed ceiling price are deemed appropriate. In contrast, given the lowpresence of local companies in the Peruvian PV market, the adoption of local content requirements would lead to higher support costs without significantly increasing the local development potential.
publishDate 2020
dc.date.none.fl_str_mv 2020
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
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dc.identifier.none.fl_str_mv https://doi.org/10.1016/j.esd.2020.01.009
http://hdl.handle.net/10459.1/68184
url https://doi.org/10.1016/j.esd.2020.01.009
http://hdl.handle.net/10459.1/68184
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Versió postprint del document publicat a: https://doi.org/10.1016/j.esd.2020.01.009
Energy for Sustainable Development, 2020, vol. 55, p. 151-160
dc.rights.none.fl_str_mv cc-by-nc-nd (c) International Energy Initiative, 2020
info:eu-repo/semantics/openAccess
http://creativecommons.org/licenses/by-nc-nd/4.0/
rights_invalid_str_mv cc-by-nc-nd (c) International Energy Initiative, 2020
http://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
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dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
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