Procurement auctions for an electricity system with increased wind technology
Aimilia Pattakou  1@  
1 : ETH Zurich  -  Website
Zürichbergstrasse 18, 8092 Zürich -  Suisse

Auctions are used in many countries as a policy measure to promote renewable energy. However, do auctions incentivize firms to invest in acquiring information regarding their own potential revenue? I use a first-price sealed bid auction model with two bidders to assess the effect of auctions on information acquisition, when procuring wind energy capacity. Preliminary results show that investing in information acquisition can be a dominant strategy, an effect policy makers need to take into account given that setting the price for renewables exogenously can result in inefficiencies.


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