Reaching India's Renewable Energy Targets: Effective Project Allocation Mechanisms

This executive summary examines the effectiveness of auctions versus feed-in tariffs as project allocation mechanisms for achieving India's 2022 renewable energy targets, concluding that while auctions are generally cost-effective, they have not yet resulted in adequate deployment.

• The Government of India utilizes two primary mechanisms for procuring renewable energy: feed-in tariffs, which use fixed rates and a first-come, first-serve allotment process (typically for wind power), and auctions, where developers quote tariffs and are selected based on financial and technical criteria (typically for solar power).
• An analysis of 20 renewable energy auctions globally indicates that auctions are almost always cost-effective compared to baseline feed-in tariffs, though they have not yet achieved adequate deployment. Savings from these auctions reached up to 58% from the baseline; specifically, 47% of auctions saw savings over 20%, 24% saw savings between 10-20%, and 29% saw savings of up to 10%.

APA

Climate Policy Initiative (2015). Reaching India's Renewable Energy Targets: Effective Project Allocation Mechanisms. https://www.climatepolicyinitiative.org/publication/reaching-indias-renewable-energy-targets-effective-project-allocation-mechanisms/

Chicago

Climate Policy Initiative. Reaching India's Renewable Energy Targets: Effective Project Allocation Mechanisms. 2015. https://www.climatepolicyinitiative.org/publication/reaching-indias-renewable-energy-targets-effective-project-allocation-mechanisms/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Reaching India's Renewable Energy Targets: Effective Project Allocation Mechanisms |date=13 May 2015 |url=https://www.climatepolicyinitiative.org/publication/reaching-indias-renewable-energy-targets-effective-project-allocation-mechanisms/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2015reaching, author = {{Climate Policy Initiative}}, title = {{Reaching India's Renewable Energy Targets: Effective Project Allocation Mechanisms}}, institution = {Climate Policy Initiative}, year = {2015}, month = may, url = {https://www.climatepolicyinitiative.org/publication/reaching-indias-renewable-energy-targets-effective-project-allocation-mechanisms/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }