GOVT EXAMINING OPTIONS IN BIDDING PROCESS OF RENEWABLE PROJECTS
The Centre is reviewing a proposal put forward by the wind and solar power producers to stop reverse auction held through electronic bidding, and rather revert to conventional close bidding.
Anand Kumar, secretary, Ministry of New and Renewable Energy (MNRE), said there had been a lot of push from energy industry players in this regard.
"There are various pros and cons to it. We are currently examining the reverse auction through e-bidding vis-à-vis the conventional bidding. Both are transparent. But, the demand for the conventional procedure seems to be more, and we are trying to find out from experts which is the better," he said on the sidelines of the Global Wind Day on Saturday. An e-bid is visible to all players, being held on electronic platform. A closed bid, on the other hand, is submitted in a sealed envelop. Wind and solar power sector players had been approaching the Centre, including the Prime Minister’s Office (PMO), to look into the matter of the rapid fall in the tariffs, said a source privy to the matter.
In a representation to the government, the industry players said the tariffs had stabilised now, and open bidding would lead to unnecessary competition without the promise of a healthy return.
"We are not shifting from one regime to another. The decision, whenever taken, will be based on merit. We are evaluating the merits. Decision would be made by the competent authority," said Kumar.
Open bidding has been prevalent in the solar sector since its inception in 2010 for projects awarded by the Centre. In the wind sector it was introduced only last year. For the past two decades, wind projects were awarded through feed-in tariff mode ( power rate decided by the State Electricity Regulator Commission).
Tulsi Tanti, chairman Suzlon Group, is of the opinion that with the introduction of the bidding regime, the volume growth became clear for the next five years. "The exponential volume growth of 12-15 GW per annum creates economies of scale and thereby offsets the concerns of low tariffs. It is a win-win situation. However, we need to create a level playing field for SMEs, specifically, to take part in the wind energy programme," he said.
The financial year 201617 saw wind power capacity addition of over 5,000 MW, which was highest ever in India in one year and exceeded the target by 38%, said Indian Wind Turbine Manufacturers Association. The Centre has already awarded 7,500 MW of power project and another 11,500 MW is in the pipeline. Further 10,000 MW, each, will be rolled out in FY19 and FY20. In the solar sector, the capacity addition currently stands at 20,000 MW. As the government is confident that it will meet its target of 175 GW of clean energy capacity (100 GW solar and 80 GW wind) in the next two years, it has now decided to set up 225 GW by 2022.