Auctions as an allocation tool – how auctions can be tailored to reduce uncertainty
Norway is in the process of opening up for establishment of offshore wind production. One option is the use of auctions to allocate exclusive rights for this purpose. Industry players have raised concerns in particular due to uncertain prerequisites for these auctions. In this article, we point out that uncertainty might be mitigated by tailoring the auctions, and we give examples on how uncertainty can be reduced.
