Over the past several decades, utilities have been transitioning from a business model – where they provide all the generation needed to serve their customers – to a model where large, across-border trading markets are created to allow utilities to buy some of their energy needs through the market from the least cost provider. Today, countries are realizing the commercial and operational benefits of expanding energy markets and regional energy trade. Larger markets provide opportunities to expand the penetration of renewable energy, accelerate demand management, drive up energy and grid efficiency, and drive down costs. The gradual harmonization of electricity codes and balancing mechanisms, the strengthening of institutional cooperation, the investment in viable interconnections, and the expansion of trade and markets will offer significant benefits to the participating utilities. EUPP activities are helping our partner countries to make the necessary transitions, liberalize their markets and realize these benefits.
Asia Gas Partnership
System Flexibility for Asia
Reverse Energy Auctions
A reverse auction competitive procurement process allows a government or entity to receive tenders from many vendors and accept the lowest bid or bids for future generation projects. This encourages competition among the project developers for the purpose of achieving the most cost-efficient proposal for the specific planned generation project. These auctions can be modified to be for one or several sites, for one or several buyers, to encourage renewable energy, or a certain type of renewable energy, or to encourage certain types of local inputs. EUPP works with partner utilities to develop necessary frameworks for the integration of reverse energy auctions into their energy procurement strategies.