How to design an offshore wind auction

Several of the recent highly publicised project cancellations or delays are directly linked to poor auction design, so it makes sense to avoid or correct certain mistakes.

The goals of auctions are many, and some governments may prioritise some over others, but it is worth listing them explicitly.

Getting capacity built means setting goals and providing a framework that is attractive enough for developers and investors. This necessitates reasonable economics, predictable timelines, and goals that do not change (too much) along the way.

For a capital-intensive industry that spends most of its money upfront and then takes a long time to get its payback, that ideally means rapid development cycles and predictable revenue streams.