Access to AREA
Access to AREA

AREA

Revolutionising Renewable Energy Procurement

AREA (Analytics for Renewable Energy Auctions) is a new and innovative platform that changes how renewable energy is procured in developing countries. It was conceived to support governments throughout the entire procurement cycle. Click to access

  • Global Infrastructure Hub
  • Asian Infrastructure Investment Bank

We offer a complete suite of modules covering the entire cycle of renewable energy procurement programme(s) (REPP), from initial data gathering to monitoring projects in operation. AREA aims to provide solutions to issues commonly present in energy procurement in EMDEs such as limited access to market information by government teams, limited knowledge of the impact of risk mitigation and auction design instruments, limited bankability, lack of standardised documentation and procurement processes, bureaucratic and costly project follow-ups and monitoring.

  • Data Gathering
  • Market Setup
  • Tenders Case Studies

AREA is a must-have for governments that want deeper insights and to streamline the process of attracting investments at scale

AREA is extremely flexible. Its suite of models can be used by different stakeholders in different ways:

  • It can work in a stand-alone mode with a selection of its modules for specific insights.
  • And/or in an integrated mode through dedicated workflows depending on specific needs, allowing each actor to interact with the platform by providing their own inputs and perspectives.
01

Data acquisition and processing

Data acquisition and processing

  • Reference Tenders

  • Market Setup

  • Data Gathering

02

Risk analysis and mitigation

Risk analysis and mitigation

  • Risks Assessment

  • Public Instruments

03

Cost of energy

Cost of energy

  • WACC Estimation

  • LCOE with uncertainty evaluation

04

Auction design

Auction design

  • Auction Design Tool

  • Agent-Based Model

  • Round Optimizer

Agent-Based Model for Optimal Bid Pricing

We designed a state-of-the-art Agent-Based Model to estimate winning prices from a given bidder’s scenario, optimising energy deployment.

AREA auction simulation vs real mean winning bid prices. Solar PV in Germany, 2015-2022. * **


* Bundesministerium für wirtschaft und klimaschutz, Germany. Bundesnetzagentur. Ausschreibungen für EE- und KWK-An­la­gen, 2022 url: https://www.bundesnetzagentur.de/DE/Fachthemen/ElektrizitaetundGas/Ausschreibungen/start.html
** N Saintier, M Kind, JP Pinasco, Learning, Mean Field Approximations, and Phase Transitions in Auction Models. In Dynamic Games and Applications, doi:10.1007/s13235-023-00508-9

The platform offers a detailed overview of the energy sector's key infrastructure and economic and financial features.

From a programme structuring perspective, the platform is meant to streamline market and risk assessment, renewable energy procurement programme(s) (REPP) design, and implementation, including the preparation of customised legal agreements

AREA will enable policymakers to manage the entire tender process online through an eTendering module within a blockchain ecosystem. This will ensure transparency, equal bidder rights, security, and time efficiency from the launch of the call for tenders to project awarding and agreement execution. It will also support the post-award monitoring phase, tracking key metrics during construction and operation.

AREA is an innovative and reliable one-stop platform to catalyse private-sector investments at scale in an efficient and cost-effective way