Publication: Promoting Renewable Energy through Auctions : The Case of India
Date
2014-06-13
ISSN
Published
2014-06-13
Author(s)
Khana, Ashish
Barroso, Luiz
Abstract
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.
Link to Data Set
Citation
“Khana, Ashish; Barroso, Luiz. 2014. Promoting Renewable Energy through Auctions : The Case of India. Live Wire, 2014/15. © World Bank, Washington, DC. http://hdl.handle.net/10986/18673 License: CC BY 3.0 IGO.”
Report Series
Report Series
Other publications in this report series
-
PublicationPowering through the Storm: Climate Resilience for Energy Systems(World Bank, Washington, DC, 2022-09)Climate change and its impacts on power systems often mean more frequent power outages and repairs, which raise maintenance costs and pose other challenges. Yet proactive modifications in project design, maintenance, and operation can enhance system resilience at lower costs than reactive adaptation. This Live Wire considers the implications of climate resilience in the power sector and highlights ongoing World Bank work and best practice, with a focus on Africa.
-
PublicationLearning from Large-Scale Solar Home System Electrification in Bangladesh(Washington, DC, 2022)The Bangladesh Solar Home Systems (SHS) Program contributed significantly to achieving near-universal access to electricity by installing over 4 million SHSs from 2003 to 2018, serving 16 percent of rural households by 2016. The government mobilized USD 683 million in loans and grants from international development partners for roll-out financing, which leveraged an additional USD 412 million from domestic sources. The Program provided significant benefits to all participants, especially rural households. These experiences are relevant to Sub-Saharan Africa, where nearly 600 million people lack electricity access and 40 percent of electricity connections will need to be off-grid to achieve universal access by 2030
-
PublicationAccess to Clean Cooking and Electricity: Righting the Policy Balance in Sub-Saharan Africa and Fragile Settings(World Bank, Washington, DC, 2022)This Live Wire analyzes data from the 2020 edition of Regulatory Indicators for Sustainable Energy (RISE) and presents the trends in policy on access to clean cooking and electricity, with a focus on Sub-Saharan Africa and the countries within the region affected by fragility, conflict, and violence. The issue explores the imbalance in policy effort on the two forms of access.
-
PublicationAgrodem: An Open-Source Model that Quantifies the Electricity Requirements of Irrigation(World Bank, Washington, DC, 2022)Sustainable Development Goal 7 (SDG 7) aims to ensure access to modern energy for all by 2030. Reaching the goal depends on ramping up electrification efforts. Most of the geospatial models developed to date to identify priority areas for energy access efforts focus on the electrification of households, giving short shrift to industrial and agricultural activities. But loads from those activities can be substantial. When combined with residential loads, they can affect the least-cost technology
-
PublicationOpportunities for Direct Uses of Geothermal Energy in Türkiye(Washington, DC : World Bank, 2022)Türkiye has substantial geothermal potential, and the country’s government is committed to exploiting it, both for economic reasons and to meet its obligations as a signatory of the Paris Agreement on Climate Change. Türkiye has more than 400 known geothermal fields in 63 different provinces. The country’s total estimated geothermal potential is more than 60,000 megawatts thermal. Developing that potential could create more than 120,000 direct jobs, with ample opportunities for women’s participation. The Turkish government has set an ambitious goal of 11,150 MWt in direct uses of geothermal energy by 2025. Meeting that goal will require raising awareness, building capacity, ensuring a favorable regulatory environment, and increasing access to funding for both public and private entities.