Competitive bidding or feed-in-tariff; which is better suited for India's wind energy sector?
There has been a lot of debate about adopting competitive bidding for wind power, with states favoring
the shift away from the feed-in-tariff (FiT) scheme.
8However, competitive bidding process comes with a lot of risks, with one of them being that the developer may
end up compromising on quality by opting for the most aggressive bidder.
8Going by the limited success of the competitive bidding tenders in other countries, India should probably
steer clear of making the same mistake.
8In countries such as United Kingdom and France, there was a lack of penalty for failure to deliver as
promised whereas in Netherlands, there was low focus on bidders with regard to the technical and financial
capabilities.
8On the other hand, China had initially started competitive bidding for onshore wind projects but then later
changed to a 4-level FiT scheme in the year 2009.