While the second Emissions Reduction Fund auction had potential to be much larger than the first, high competition led to only 1 in 3 projects successfully winning contracts, with larger more sophisticated bidders dominating, while smaller projects disproportionately lost out.
Analysis indicates that ERF Auction III will again be highly competitive, with proponents expected to enter the market more aggressively in light of the sizeable overhang of abatement on the sidelines and uncertainty over future ERF funding. This is likely to result in a narrow bid-stack, with potential for minor pricing changes to be the difference between winning and losing.
So where to for the third ERF Auction?
RepuTex recently held a webinar to examine ERF auction three, including the outcomes of ERF II, the impact of the variable clearing rule, the overhang of abatement after the second auction, and the implications for bidding at auction three.
To access the full webinar slides (PDF), please view the Downloads box below.