Indian Reverse Auctions for Solar Power and Impact

An article in the New York Times (Dec 29, 2011) describes the reverse auctions run by the Indian government, with solar power providers bidding to win the contract, that decreased costs 30 % compared to the previous year. These lower costs make the target of 20,000 MW by 2020 is attainable. But the bidding process invites global participants, and complaints from local producers are that they need subsidies to be competitive.  Should the lower cost due to reverse auctions be appended with subsidies for local companies ? Should credit be provided more competitively to Indian firsm to level the playing field ? In general, how should development of these energy sources be coupled with generation of local manufacturing capability – would local content requirements for manufacturing be included as part of bid specifications ?

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , , , . Bookmark the permalink.

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