A recent report by CRISIL has projected that the
wind energy sector in India will record a slow growth in next five years
According to CRISIL, the shift to competitive
bidding mechanism has slowed wind energy sector growth due to a significant
fall in tariffs. This has consequently resulted in a decline in bid response and
profitability of for original equipment manufacturers (OEMs).
CRISIL has further advocated that the low
tariffs are economically unviable for the entire value chain and would lead to
low capacity addition in the wind energy sector.
Competitive bidding is a procurement method in
which bids from competing contractors/suppliers are invited by openly
advertising the scope, specifications, and terms and conditions of the proposed
contract and the criteria for evaluation of bids. Competitive bidding mechanism
for wind energy sector was introduced in 2017.
Previously, in the wind energy sector, feed-in
tariffs method was followed. Under this method, a fixed price was ensured for
The Indian government has set a growth target of
installation of 175 GW aggregate capacity of renewable energy by 2022. It
includes 100 GW from solar, 60 GW from wind, 10 GW from bio-power and 5 GW from