CEF Insights
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Renewable Energy
Cheer for wind sector: MNRE to drop reverse bidding, tender 8 GW annually
Ruchita Shah's Insight
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.