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A government order stated that India has established a goal to auction 8 GW of wind energy projects annually until 2030 in an effort to increase renewable energy capacity.
According to government data, India is one of the largest emitters of greenhouse gases in the world. It wants to increase its renewable energy production to 500 GW by 2030, from 120 GW currently.
The country did not previously have an annual target for wind power capacity.
Electronic reverse bidding has been used to modify the bidding model. Participants could lower their offer prices in order to secure contracts at the lowest price. The industry complained about artificially lowering prices. The industry complained that bidders were not required to adjust their quoted tariff for power sales – an important parameter in the awarding of the contract.
The new plants will generate power at a pooled average price for buyers, instead of current project-specific tariffs.
In 2017, India’s wind power tariffs were at their lowest point of 2.43 Rs per unit.
Consumers are able to benefit from lower tariffs, but this has slowed down capacity growth in India. India has just 42 GW of electricity generated through wind energy out of an overall capacity of about 410 GW.