Wind energy project e-reverse auctions to begin: Secretary MNRE

15 Jul 2022 CW Team

Renewable energy secretary Indu Shekhar Chaturvedi said that the government has agreed in principle to halt electronic reverse auctions of wind power projects. The e-reverse auctions for other renewable projects would also be suspended because the ministry has agreed in principle with the industry's claims that such bidding leads to unhealthy competition.

"A preliminary decision has been made. The industry has complained that e-reverse auctions are causing tariffs to be artificially lowered, resulting in "unhealthy competition." He made the remarks at a CII conference on India@2030: A Roadmap for Atmanirbhar Bharat in RE.

He further stated that the government would follow the customary single bidding process for wind projects.

"If the e-reverse auction for wind is being taken down on transparency concerns, how can it be sustained for other renewable energy projects," a senior executive of a company said.

In e-reverse auctions, bidders continue to lower their bids as they would in a traditional auction. The NDA government pioneered e-reverse auctions using LED lamps and expanded them to include coal, solar, and wind power auctions.

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