The literature on deregulated electricity markets generally assumes available capacities to be given. In contrast, this paper studies a model where firms precommit to capacity levels before competing in a uniform price auction. The analysis sheds light on recent empirical findings that firms use...

Procurement auctions for renewable energy support have become a standard policy instrument to stimulate investment in clean energy. Yet, the nexus of award prices and post-auction realization rates of winning projects is not well understood in the literature. We combine auction theory and real...