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U.S. Department of Energy
Office of Scientific and Technical Information

Problems with a competitive bid system

Journal Article · · Cogener. Small Power Mon.; (United States)
OSTI ID:6667576
Despite a surface appeal, the process of competitive bidding in selecting qualifying cogenerating facilities could deter their development. Three areas of problems are the priority placed on price over project quality, the preference that bidding will create for low-cost gas-fired projects, and the opportunities for abuse which bidding introduces. Energy Michigan recommends avoiding these problems by using a first come, first served mechanism coupled with project milestones. This would allow viable project to proceed as they are ready, but subject to allocation and diversity measures established by the Commission.
OSTI ID:
6667576
Journal Information:
Cogener. Small Power Mon.; (United States), Journal Name: Cogener. Small Power Mon.; (United States) Vol. 2; ISSN CSPME
Country of Publication:
United States
Language:
English