Reverse Bidding Comes Back as Wind Tariffs Rise in Auctions

Reverse Bidding Comes Back as Wind Tariffs Rise in Auctions

The wind industry in India is disappointed with the Ministry of New and Renewable Energy’s decision to bring back reverse bidding. In the past, reverse bidding has led to a decrease in wind tariffs, but the industry feels that too much focus on keeping tariffs low is hindering capacity additions. The wind industry believes that a balance needs to be maintained between tariffs and the expansion of wind power in the country. The Ministry’s decision has raised concerns among wind energy developers and investors. They are worried that the emphasis on low tariffs will discourage investment in the sector and reduce the pace of capacity addition. The industry suggests that other factors like evacuation infrastructure and land allocation should also be considered while determining tariffs. Additionally, the industry believes that a stable policy environment is essential for the growth of the wind energy sector.

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