Promoting Renewable Energy through Auctions : The Case of India
This knowledge note singles out auctions as an important mechanism that has been implemented in a growing number of countries in recent decades. It features a case study of auctions designed to promote the generation of electricity from renewable s...
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/06/19670595/promoting-renewable-energy-through-auctions-case-india http://hdl.handle.net/10986/18673 |
| Summary: | This knowledge note singles out
auctions as an important mechanism that has been implemented
in a growing number of countries in recent decades. It
features a case study of auctions designed to promote the
generation of electricity from renewable sources in India.
The country's national- and state-level experience with
auctions of solar energy products both large and small
attests to the flexibility and adaptability of auction
mechanisms. Under the National Solar Mission, auctions have
been implemented with good results in a variety of settings.
Lessons include the importance of clear ideas about key
goals and objectives, and about areas where sacrifices can
be made. Experience in several states has also underlined
the importance of regulatory stability. This case study is
interesting, because India's National Solar Mission led
to concurrent implementations of renewable auction schemes.
Both national- and state-level auctions have led to
successful projects. The Indian central government's
experience with auction implementations can be split into
three main segments. Phase 1 auctions concern centralized
auctions for procuring utility-scale solar plants. Rooftop
auctions concern central government conducted auctions for
rooftop solar generation in specific cities. No centralized
auctions for large-scale solar generation were conducted in
2012 or 2013, so phase 2 auction were created under a new
bidding process. Successive delays that were observed in the
implementation of phase 2 auctions had negative results.
Investors need to feel secure before they will establish a
strong manufacturing or developer base. |
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