When governments and utilities launch auctions for renewable energy projects, the lowest price used to be the ultimate deciding factor. But in 2025, the picture is more complex. Non-price criteria (NPC) – factors such as sustainability, social impact, system integration, and innovation – are increasingly shaping procurement decisions. By going beyond cost, these criteria ensure projects deliver long-term value for society, the economy, and the environment.
NPCs are broad, ranging from environmental safeguards and biodiversity protection to ensuring local job creation and responsible supply chains. For example, a solar farm that commits to recycling old panels or a wind developer that sources components from regional manufacturers will often be favored over a lower-cost competitor with fewer sustainability measures. This shift reflects Europe’s wider policy ambitions under the EU Net-Zero Industry Act and national strategies aimed at climate neutrality by 2050.
Sustainability remains at the heart of NPCs. In practice, this means projects are now evaluated on their ability to minimize pollution, reduce lifecycle emissions, and promote circularity. In Denmark, for instance, offshore wind bids in 2025 are scored partly on recyclability of turbine blades and commitments to marine biodiversity protection. These considerations align with new EU directives requiring lifecycle assessments in public tenders.
In Greece, many energy companies are aligning with international standards and frameworks. HELLENiQ uses GRI (Global Reporting Initiative) and UN Global Compact. MYTILINEOS (Energy & Metals) received MSCI: “AA” (Excellent), while Sustainalytics said it is: Among “Industry Top Rated Companies” in its sector; ranks 2nd out of 114 “Industrial Conglomerates”
Another Greek company that stands out as example of commitment to cutting emissions, protecting biodiversity, and driving smart energy use is Faria Renewables. This IPP also invests in local communities through initiatives like the planned “Faria Renewables Fund.” Backed by strong ethics and governance presented in their project development process, the company aims to grow sustainably, balancing innovation with positive social and environmental impact.
Social impact and local content are also gaining ground. Governments want renewable energy projects to bring jobs, training, and regional investment rather than relying heavily on imported equipment. Spain’s “Hydrogen Valleys” initiative in 2025 illustrates this: developers that source electrolysers locally and partner with vocational schools to train technicians receive higher scores in tenders. This approach builds public support for the energy transition while strengthening local economies.
Another category is system integration. Europe’s grids are under pressure as more intermittent renewables come online. NPCs now reward projects that combine renewables with complementary technologies, such as battery storage, green hydrogen, or smart grid solutions. A leading example is Germany’s 280 MW green hydrogen plant in Emden, scheduled to begin operations in late 2025. By connecting directly to offshore wind, it improves grid stability while decarbonizing heavy industry.
Innovation and resilience are equally critical. Projects that push technical boundaries – whether through floating solar, hybrid offshore platforms, or advanced cybersecurity – are receiving extra credit in auctions. The Netherlands’ Hollandse Kust West offshore wind farm, awarded in 2023 and advancing through 2025, sets the standard here: integrating offshore wind, green hydrogen, floating solar, and digital grid management in a single ecosystem. Meanwhile, resilience criteria ensure projects can withstand supply chain shocks or cyber threats, lessons underscored by recent global disruptions.
To implement NPCs, countries are adopting structured mechanisms. Weighted scoring models allocate part of the evaluation (often 20–40%) to non-price factors. Lifecycle assessments consider impacts over decades, not just upfront costs. Transparent guidelines and ESG reporting frameworks are being rolled out to ensure bidders know what’s expected and to give regulators confidence in outcomes. In some cases, like France’s 2025 solar tenders, bonus points are even offered for projects that exceed minimum sustainability requirements.
The benefits of NPCs are becoming clear. They encourage technological innovation, accelerate sustainability, and build resilient supply chains across Europe. They also align private investment with national and EU policy goals, making the energy transition more inclusive and durable. As Europe races toward its 2030 climate targets, the integration of non-price criteria into procurement is no longer optional – it’s a cornerstone of how renewable energy projects are chosen and delivered in 2025.
