The European renewable energy sector is undergoing a significant shift as governments increasingly employ auctions to allocate new project developments, with a keen focus on non-price criteria.
Introduced by the Net-Zero Industry Act, these criteria emphasise the ecological and social implications of renewable energy projects, affecting both the prequalification and award phases of auctions.
The World Wide Fund for Nature (WWF) has released a position paper detailing how member states can optimise the implementation of these non-price criteria in renewable energy auctions.
The organisation suggests that for auctions under the EU State Aid Guidelines on Climate and Energy, countries should utilise up to 30% of the overall score for non-price criteria in the award phase, prioritising ecological and social aspects.
For auctions not receiving public financial support, the recommendation is to exceed this benchmark.
WWF emphasises the need for measurable and scorable non-price criteria that incentivise optimal outcomes such as minimising ecological damage and promoting community engagement.
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By GlobalDataWWF’s policy recommendations include the use of ecological and social non-price criteria as prequalification thresholds, ensuring all bidders meet certain standards.
These criteria should be designed to be quantifiable, encouraging the highest achievement of objectives such as ecosystem protection and local community involvement.
Additionally, the paper calls for the monitoring of environmental and social impacts, with competent authorities designated to oversee the implementation of committed measures, and penalties for non-compliance.
For offshore wind tenders, WWF advises member states to collaborate at the sea basin level to establish a common set of non-price criteria, allowing for flexibility based on the specific characteristics of each wind farm’s location.
The criteria should encompass the entire lifecycle of the project and mandate a net-positive contribution to biodiversity, aligning with the EU Implementing Act on non-price criteria.
The paper also outlines the importance of including social criteria in tenders, ensuring the protection of human and Indigenous Peoples’ rights, and fostering local community engagement.
These criteria should also promote regional competitiveness by encouraging short supply chains and local employment.
WWF urges the European Commission to integrate social criteria into the forthcoming Citizens Energy Package to systematically incentivise the application of effective criteria in auctions.
