Putting renewable energy auctions into action - An agent-based model of onshore wind power auctions in Germany

The model results show that pay-as-bid exhibits lower prices and thus support costs than uniform pricing, whereas allocative efficiency suffers under pay-as-bid. Over time, one can observe a decline in the strike price, which is due to learning effects, whereas agents' profits increase in the course of the auctions. Furthermore, smaller actors will experience difficulties and agent diversity is likely to suffer in the long term, if this is not accounted for in other ways.