According to a report, India’s Maharashtra state, will avoid the reverse-bidding process used in the first national solar auction that led to “unbankable” projects, an official said.
“It won’t be reverse-bidding,” H.M. Kulkarni, general manager at the Maharashtra Energy Development Agency, said in an interview in Mumbai today. “We’ve seen how that has led to some issues with aggressive bids and that projects aren’t bankable.”
The agency has submitted a draft solar power policy to the state government which targets the development of 500 megawatts of solar power capacity over three years, he said.
The policy is expected to be approved within a month or two, he said.
The Gujarat government and opposition sparred over the solar power policy in the assembly last month and that the opposition alleged that the government had not followed the proper procedure while framing the policy.
Given these developments, Panchabuta believes that it is highly unlikely that Maharashtra would come up with a fixed feed in tariff like Gujarat, though the official has said reverse bidding would be avoided. The Congress led government of Rajasthan has announced that they would follow the model of the National Solar Mission with a reverse auction which has definitely been an open and transparent process in spite any other short comings that it might have. Sources tell us that Maharashtra might end up following the same model too given the political sensitivity of the subject.
Panchabuta believes that both the models have their relative merits and demerits and the success of the implementation of the projects would finally determine the success of the relative policies in our opinion.
As some developers have contended, this might lead to a number of completed projects, but those that might not last the entire life cycle or generate as efficiently. This has happened in the early wind installations too, where often the installed capacity is not a true reflection of generated capacity. However with the introduction of FiT, this is a problem that should sort itself out in our opinion.