This brief summarizes an analysis of 37winning bids for utility-scale solar PV plants procuredthrough auctions in 13 developing countries between 2013 and2016. For comparison, the full report, obtainable from theauthors, also describes examples of a failed PV auction inIndonesia and a large, bilaterally negotiated procurement ofPV capacity in Nigeria. The 37 plants were selected based onthe availability of plant-specific information and thedesire to achieve a comprehensive overview of the evolutionof auction results across countries and over time, inparticular in countries such as Brazil and South Africa thathave organized multiple rounds of auctions. The 37 plantswere chosen from a set of some 500 winning bids coveringmore than 50 auctions in 16 countries. Although the sampleis relatively small, it is large enough to explain thelowest announced prices and to indicate whether they aresupported by market fundamentals. The analysis includes (i)a simple financial model (based on plant-specificparameters) that explains bidding prices and (ii) acomparison of auction designs in the countries covered,along with descriptions of the conditions under whichindividual auctions took place. Interviews with stakeholdersactive in utility-scale solar PV markets, includingdevelopers, utilities, consulting companies advisinggovernments, bidders, government officials, and financialinstitutions, complement the analysis. Stakeholders verifiedsome of the assumptions and conclusions, identified businessstrategies of market players, provided qualitative detailsabout auction processes, and suggested avenues for bringingmore sustainability into future solar PV development.
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