Renewable Energy

Cheer for wind sector: MNRE to drop reverse bidding, tender 8 GW annually

Ruchita Shah

Notable because

The rate of wind capacity addition since the introduction of reverse bidding in 2016 has remained moderate. The actual installed capacity has fallen short by ~20 GW compared to the 2022 target of 60 GW. One often-cited reason is that reverse auctions fostered excessive competition, leading to irrationally low tariff discovery. This move by the MNRE could give wind capacity addition a much-needed boost.

What to look out for in the months ahead

(a) Tariff, which is discovered under single-stage closed-envelop bidding

(b) renewable purchase obligations (RPO) compliance as per the new trajectory notified by the Ministry of Power, which has a carve-out for wind projects commissioned after March 31, 2022.