Building on the insights of the recently finalized AURES project, AURES II investigates auction design options in more detail to determine their policy performance depending on different of policy objectives and give recommendations on their use. We apply a multi-methodological approach, including literature review, theoretical analysis, case studies, surveys, and empirical and quantitative methods such as econometric analysis and model simulations. The project expands the empirical base created in AURES in several directions. It continues the monitoring of ongoing and planned auction schemes. Case studies will now be complemented by a comprehensive online auction database, and quantitative analysis of how auction design features affect auction performance. The effects of auctions are further explored in two directions: (i) Developments in RES sector value chains and innovation processes in reaction to auctions, and (ii) Changes in financing patterns of RES projects in reaction to certain auction design specifications. AURES II will inform currently ongoing auction-related policy debates: (i) Challenges of cross-border openings of auctions; (ii) the question of technology-neutrality, i.e. of combining two or more RES-E technologies in one auction; and (iii) future challenges, including the necessity for and requirements towards auctions due to changing electricity markets, generation patterns, and other framework conditions such as actor diversity. The multi-methodological approach is accompanied by a strong involvement of relevant stakeholders including policy makers and industry representatives. The project builds upon and expands the strong network from AURES, allowing policy makers and industry to exchange expectations, experiences and ideas. This active dialogue allows stakeholder to learn from best practice and facilitates capacity building across borders in Europe. AURES II contributes to the EC’s communication activities in the area of RES auction design.

Feed-in tariffs (FITs) have been the fuel for successful solar PV growth stories in basically every one of today’s large solar markets. First in Europe, now in China and Japan. The US is the only exception – backed by tax credits and net-metering, leasing has become a key means of financing residential solar systems there. With many European countries phasing out FITs, the simplicity of selling solar power will be gone; and without safe and fair returns, real estate and homeowners will not invest in PV anymore. In post-FIT times, solar companies and/or electric utilities in partnership with financial institutions will have to come up with new business models and financing schemes for PV investors in order to continue the success story of the FIT era. The German Solar Industry Association as project coordinator is driven by the mission to successfully evolve those business and financing models, to disseminate them among stakeholders and to shape the necessary policy framework and to remove barriers that prevent those models from realization. Consequently, the goal of PV Financing is to help stakeholders from specific application segments with the implementation of PV projects based on new PV business models while applying innovative equity and debt financing schemes. The availability of financing for PV projects based on the new business models shall be increased and the transaction costs shall be decreased by educating investors, commercial banks and insurance companies on the PV business models and their risks.

The aim of the PV-Prosumers4Grid project is to develop and implement innovative self-consumption and aggregation concepts and business models for PV prosumers that will help integrating sustainable and competitive electricity from PV in the electricity system. The benefits of the PV-Prosumers4Grid action will be therefore threefold: • To identify the necessary regulatory changes and the business opportunities for PV prosumers and grid operators • To further support the deployment PV systems for electricity generation with focus on physical and financial grid interactions • To provide PV Prosumers (households and industries) with competitive and sustainable electricity Innovative self-consumption and aggregation concepts and business models for PV generation are extremely needed nowadays. At the time being many EU Member States have drastically reduced measures to further support the development of the RES sector, even though several projects have clearly demonstrated the need to maintain the policies to support RES until when a consolidated competitiveness has been achieved. Such competetiveness for variable RES will depend on the ability of the existing or future electricity markets to provide them with adequate revenues, whatever the size of the plant. In addition, the variable aspect of PV doesn’t allow them by nature to bid on the market at chosen times, with a possible and already visible impact on the market prices. The consequence could be that under such conditions, their competitiveness will become more difficult to achieve unless the consumers could become more responsive to price signals and allow to displace the load. Moreover, the new state aid guidelines published in April 2014 by the European Commission are pushing for further integration of renewable sources into the electricity markets, which will require from RES to cope with market integration, more constraining grid codes and balancing regulations.

Heating and cooling (H&C) accounts for about half of Europe’s total energy needs with 75% still dependent on fossil fuels. Thus, rapid and significant change is needed to reach the EU 2050 goals. Due to the local nature of H&C systems, action has to be taken at local level involving a variety of stakeholders. This has been recognised in recent years and activities have been started like developing best practice policies and open source analysis tools. However, (efficient) H&C planning and project development are still not commonplace in most European municipalities. The objectives of Act!onHeat are to further disseminate and take up the concept and methods for strategic H&C planning, increase its quality and to push the development and implementation of identified measures. To reach these goals Act!onHeat will implement the following activities: (i) identify the success factors of strong and efficient existing H&C plans and develop a workflow for strategic H&C planning and project development based on the existing open source tools Hotmaps and THERMOS, (ii) support at least 120 municipalities in strategic H&C planning and the development of at least 30 pre-feasibility studies for related individual projects with a mix of tailored individual and group support activities, (iii) train stakeholders who can actively contribute to decarbonisation in the use of workflows, processes and tools through a dedicated training programme, and (iv) leverage additional impact with a mix of Europe-wide roadshow events, acceleration dialogues, webinars and further promotional activities. The consortium is perfectly suited for these activities bringing together leading European experts in strategic H&C planning and policy analysis, local governments networking, capacity building and investment support. A remarkable number of letters of support show the interest of the target group as well as the well-established connections between the target group and the consortium members.