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India's highest solar open access capacity of 1.8 GW in Q1 2024
POWER & RENEWABLE ENERGY

India's highest solar open access capacity of 1.8 GW in Q1 2024

In Q1 of the CY 2024, India witnessed its highest solar open access capacity addition of 1.8 GW, marking a nearly 152% increaseYoY from 722 MW, as revealed by the newly released Q1 2024 Mercom India Solar Open Access Market Report. This surge in installations also signifies a two-fold QoQ rise from 909.3 MW.

The escalation in installations can be attributed to falling module prices, stemming from surplus production in China and the suspension of the Approved List of Models and Manufacturers order for projects commissioned until March 2024. This enabled developers to import modules and commission projects at a reduced cost. Many developers deferred module procurement until Q4 2023, anticipating lower prices, and subsequently initiated projects in Q1 2024, significantly boosting installations. Furthermore, lower power purchase agreement (PPA) prices, resulting from reduced project costs, further incentivized consumers to embrace solar open access.

Priya Sanjay, Managing Director, Mercom India, highlighted the substantial demand for open access solar driven by corporations' carbon emission reduction targets and the emergence of green energy policies by state governments, coupled with charge waivers.

Rajasthan led solar open access capacity additions in Q1 2024, contributing nearly 28% of the installations, followed by Andhra Pradesh and Maharashtra, accounting for 21% and almost 12%, respectively. As of March 2024, the total installed solar open access capacity reached 14.3 GW, with Karnataka maintaining its leading position, constituting nearly 30% of the cumulative installed capacity. Maharashtra and Tamil Nadu followed with 13% and 11%, respectively.

The project pipeline, inclusive of those under development and in the pre-construction stage, stood at over 18 GW as of March 2024, with nearly 74% of these pipeline projects located in Karnataka, Rajasthan, Maharashtra, Tamil Nadu, and Andhra Pradesh.

Sanjay emphasised the importance of policies that make economic sense, emphasising the need for lower landed costs compared to grid prices and seamless approvals, along with the presence of consumers within the state to procure power.

Adani Hybrid Energy emerged as the top seller in the Green Day-Ahead Market (G-DAM), accounting for approximately 14% of the electricity sold, while Arcelor Mittal was the leading buyer, purchasing around 36% of the electricity from G-DAM. The volume of renewable energy certificates traded on the Indian Energy Exchange (IEX) increased by over 133% QoQ, with the volume traded in the Green Term Ahead Market on IEX rising by 14% QoQ.

The report provides an in-depth analysis of the solar open access market, retail electricity tariffs, PPA prices, and open access charges and costs across seventeen states, forecasting sustained high demand for open access power in India driven by initiatives like RE100, responsible steel and green cement. (Source: Mercom)

In Q1 of the CY 2024, India witnessed its highest solar open access capacity addition of 1.8 GW, marking a nearly 152% increaseYoY from 722 MW, as revealed by the newly released Q1 2024 Mercom India Solar Open Access Market Report. This surge in installations also signifies a two-fold QoQ rise from 909.3 MW. The escalation in installations can be attributed to falling module prices, stemming from surplus production in China and the suspension of the Approved List of Models and Manufacturers order for projects commissioned until March 2024. This enabled developers to import modules and commission projects at a reduced cost. Many developers deferred module procurement until Q4 2023, anticipating lower prices, and subsequently initiated projects in Q1 2024, significantly boosting installations. Furthermore, lower power purchase agreement (PPA) prices, resulting from reduced project costs, further incentivized consumers to embrace solar open access. Priya Sanjay, Managing Director, Mercom India, highlighted the substantial demand for open access solar driven by corporations' carbon emission reduction targets and the emergence of green energy policies by state governments, coupled with charge waivers. Rajasthan led solar open access capacity additions in Q1 2024, contributing nearly 28% of the installations, followed by Andhra Pradesh and Maharashtra, accounting for 21% and almost 12%, respectively. As of March 2024, the total installed solar open access capacity reached 14.3 GW, with Karnataka maintaining its leading position, constituting nearly 30% of the cumulative installed capacity. Maharashtra and Tamil Nadu followed with 13% and 11%, respectively. The project pipeline, inclusive of those under development and in the pre-construction stage, stood at over 18 GW as of March 2024, with nearly 74% of these pipeline projects located in Karnataka, Rajasthan, Maharashtra, Tamil Nadu, and Andhra Pradesh. Sanjay emphasised the importance of policies that make economic sense, emphasising the need for lower landed costs compared to grid prices and seamless approvals, along with the presence of consumers within the state to procure power. Adani Hybrid Energy emerged as the top seller in the Green Day-Ahead Market (G-DAM), accounting for approximately 14% of the electricity sold, while Arcelor Mittal was the leading buyer, purchasing around 36% of the electricity from G-DAM. The volume of renewable energy certificates traded on the Indian Energy Exchange (IEX) increased by over 133% QoQ, with the volume traded in the Green Term Ahead Market on IEX rising by 14% QoQ. The report provides an in-depth analysis of the solar open access market, retail electricity tariffs, PPA prices, and open access charges and costs across seventeen states, forecasting sustained high demand for open access power in India driven by initiatives like RE100, responsible steel and green cement. (Source: Mercom)

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