Wind Power Rates May Bottom Out
What are reverse auctions?
- When companies bid to offer the lowest price to sell a product. This is often done in case of a situation of monopsony.
What is monopsony?
- Monopsony is a market situation in which there is only one buyer and multiple sellers. In this situation the buyer decides the price or buys the product with the lowest price.
- This often happens in the case of government contracts.
- India has committed to installing 60,000 MW of wind power projects by 2022, but has met only two-thirds of the target.
- While reverse auctions were the norm for all renewable energy projects, including solar and wind projects since 2015, the government’s change of stance signals that the rock-bottom prices associated with clean energy projects — per unit solar power costs have fallen to ₹2.40 a unit — do not reflect the true costs of renewable energy.
About wind energy in India
- The overall installed wind power capacity was 40 GW as of 30 November 2021, making it the world’s fourth-highest installed wind power capacity.
- According to the Ministry of New and Renewable Energy (MNRE), can generate 127 GW of offshore wind energy.
- More than 95% of commercially exploitable resources are located in seven states: Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu.
Source The Hindu