SSE Renewables Calls for More Use of Non-Price Criteria in Offshore Wind Auctions

Business & Finance

June 16, 2023, by Adnan Memija

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).

Beatrice offshore wind farm; Photo source: SSE Renewables

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.

To share their perspective, SSE Renewables has published a short position paper on the use of non-price criteria.

The paper outlines the type of criteria best suited for mature and new offshore wind markets as well as those for an auction for seabed or for a CfD.

SSE Renewables said that NPC must be well-designed and carefully implemented, with transparent assessment and monitoring of commitments to avoid overcomplication and risk of legal challenges.

The company also added that seabed leasing auctions for offshore wind are best suited for the 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.

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In its paper, SSE said that the most appropriate NPC is the track record and deliverability of projects which should be included as a pre-requisite to participate rather than a point of competition in new offshore wind markets.

Beyond that, criteria related to sustainability (circularity; workforce; and skills), ecological protection, and supply chain development, should be prioritised, the renewable energy developer said.

The company added that it has extensive experience of non-price criteria, having participated in auctions including ScotWind; the most recent Polish offshore license tender; and the Hollandse Kust West tenders in the Netherlands.