Key Messages

CSTEP organised a stakeholder consultation workshop on the wind energy sector at the request of the Ministry of New and Renewable Energy (MNRE) recently. The main objectives of this workshop were to discuss the results of the national wind potential reassessment study conducted by CSTEP, use geo-spatial analysis to locate high potential wind zones for further development, and discuss mechanisms to ease the problems currently plaguing the sector, such as inadequate site allotments, inefficient power purchase agreements, pricing of renewable energy etc.
As an outcome, a particular zone was identified to serve as a “pilot” for site-specific renewable energy potential assessment and economic validation. This would be followed by a trial of a price discovery mechanism using expressions of interest from industry applicants for sites in the identified zone.
In the above context, this working paper presents a summary of international experiences from auction mechanisms for wind energy, concerns and barriers to implementation of reverse bidding, and the way forward for successful bidding in Indian conditions.

Competitive Bidding for the Wind Sector