Editorial Note: This article is written with editorial review and topic relevance in mind.
Some tenders entice developers to compete over how much they are willing to pay to run projects, a system known as “negative bidding ”. “negative bidding increases the costs of offshore wind. This may bloat costs yet more.
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We then modeled different levels of negative bids by wind and examined how system costs and emissions were affected. “negative bidding”, the idea that in certain countries offshore wind developers should pay for the right to build wind farms, has in recent years often undermined investments in offshore wind. Costs that have to be passed on to consumers and the wind energy supply chain.