The use of auctions for renewable energy production in Portugal and Norway
Católica Porto Business School, in partnership with NHH – Norwegian School of Economics, led a two-year research project (2022–2024) entitled "Auction Design for Renewables". The principal investigator was Ricardo Gonçalves, an associate professor at Católica Porto Business School and a CEGE – Research Centre in Management and Economics researcher.
The project was awarded through the second competitive call promoted by EEA Grants, "Portugal and Norway – Partnerships for Innovation", with a total funding of approximately €17,000 from the EEA Grants Bilateral Relations Fund. Its objective was to deepen knowledge about using auctions for renewable energy production, focusing specifically on solar and wind energy, with applications based on the experiences of both Portugal and Norway.
The research, conducted between October 2022 and December 2024, involved various stakeholders in this bilateral initiative, built on cooperation, networking, knowledge exchange, and transfer concerning renewable energy auctions between Portugal and Norway.
The research team engaged with numerous entities in both countries. In Portugal, stakeholders included the then-Secretary of State for Energy, Ana Gouveia, the Energy Services Regulatory Authority, the Portuguese Renewable Energy Association (APREN), and operators such as EDP Renováveis, Greenvolt, TripleWatt, Chint Solar, Finerge, and SmartEnergy. In Norway, the project team met with Andreas Bjelland Eriksen, the then-Secretary of State for Petroleum and Energy (currently Minister for Climate and Environment), Renewables Norway (the Norwegian Renewable Energy Operators Association), Vista Analyse (a consultancy firm advising the Norwegian government on offshore wind energy auctions), and Equinor, one of the largest operators in the sector.
The project concluded with an online workshop in December 2024, during which stakeholders discussed the advantages and disadvantages of renewable energy auctions, balancing objectives like sustainability and supply security, and the potential need for direct or indirect subsidies. Much of the discussion centred on the offshore wind energy auctions, which took place in Norway at the beginning of 2024 and are expected to take place in Portugal during 2025.
One of the primary goals of this research project was to foster knowledge exchange between Portugal and Norway in the field of renewable energy. Significant economic questions arise with the increasing adoption of renewable energy driven by global climate challenges. These include coordinating renewable energy with other production forms, ensuring its transport to end consumers, and considering potential public sector interventions. Within this context, the project enabled an analysis of how both countries address these challenges, identifying problems and solutions that may help anticipate and shape future strategies.
Having achieved its initial objectives, the research team is now focused on continuing its work in this area and contributing to an economic and political context that aims to achieve carbon neutrality by 2050.
About CEGE – Research Centre in Management and Economics: Founded in 2003, CEGE at Católica Porto Business School is a cornerstone of the School's academic research. Over the past two decades, it has established itself as a centre of excellence, combining academic rigour with relevant contributions in management and economics. Specialising in three key areas - markets and Policies, Service Management and Performance, and Ethics and Sustainability - CEGE continues to push the boundaries of knowledge and its practical application.
Through the Agreement on the European Economic Area (EEA), Iceland, Liechtenstein and Norway are partners in the internal market with the Member States of the European Union.
As a way of promoting a continuous and balanced strengthening of economic and trade relations, the parties to the EEA Agreement have established a multi-annual Financial Mechanism, known as the EEA Grants. The EEA Grants aim to reduce social and economic disparities in Europe and strengthen bilateral relations between these three countries and the beneficiary countries. For the 2014-2021 period, a total contribution of 2.8 billion euros was agreed for 15 beneficiary countries. Portugal benefited from an allocation of 102.7 million euros.
Find out more at eeagrants.gov.pt
