The Anonymous Widower

SSE Renewables Calls For More Use Of Non-Price Criteria In Offshore Wind Auctions

The title of this post, is the same as that of this article on offshoreWIND.biz.

This is the sub-heading.

SSE Renewables is calling on European governments and regulators and internationally to make greater use of non-price criteria (NPC) in offshore wind energy auctions, whether for seabed or for contracts for difference (CfD).

This is the first paragraph.

The renewable energy company said that the use of non-price criteria in auctions for new offshore wind can help support a sustainable renewable energy sector that delivers long-term value for society.

This document on the SSE Renewables web site is entitled Non-Price Criteria In Renewables Auctions and these are the points from the Executive Summary from the document.

• Use of non-price criteria (NPC) in auctions is important to deliver renewables projects which are deliverable, on time and on budget, and provide long term value to society and the environment.
• NPC must be well-designed, carefully implemented, with transparent assessment and monitoring of commitments to avoid overcomplication and risk of legal challenges.
• Seabed leasing auctions for offshore wind are best suited for use of NPC, as it is early enough in the development stage for commitments to be delivered; and avoids having to rely on purely financial bidding which risks adding to the cost of offshore wind.
•  The most appropriate NPC are track record and deliverability of projects. Beyond that, criteria related to sustainability (circularity; workforce and skills); ecological protection and enhancement; and supply chain development.
• NPC in new offshore wind markets should be focused on deliverability and track record, and included as a pre-requisite to participate, rather than a point of competition.
• More diverse non-price criteria are best suited to mature offshore wind markets where there will generally be more competition from developers to build a project.
• It is more complicated to apply non-price criteria into offtake (CfD) auctions, with re-ranking of bidders the best approach to properly incentivise the right behaviour.
• It is important that there is transparency of how successful bidders were scored against NPC; what commitments have been made and how they will be held accountable for delivery at different milestones.

Note.

1. It is good to see phrases like “track record and deliverability of projects” being embedded in this list of points.
2. As a designer of successful project management software, I know the importance of this.
3. I believe, that SSE Renewables are right to desire wider criteria for offshore wind energy auctions.

I suspect too, that there are software ideas in my past, that would make the development of offshore wind easier and more predictable.

June 16, 2023 - Posted by AnonW | Energy | Offshore Wind Power, Project Management, SSE Renewables, Wind Power