Open access solar installations in India at 209 MW in Q2 FY22

Solar open access installations in India stood at 209 MW in Q2 FY22, a 664% year-over-year (YoY) increase from 27 MW in the same period last year.

In Q2, Uttar Pradesh added the most solar open access capacity, followed by Chhattisgarh and Maharashtra.

The top three states accounted for 83% of all installations in the quarter. As of June, cumulative solar open access installations had reached 4.5 GW.

The impact of the pandemic caused a 50% drop in installations in Q2 (419 MW) compared to the previous quarter. However, with over 1.1 GW of projects in the pipeline, they are expected to rise.

Under the Draft Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, the government is promoting green open access.

According to the report, open-access policies are currently in place in Uttar Pradesh, Rajasthan, and Chhattisgarh. In Maharashtra, the commercial segment has the potential for captive open access projects.

Karnataka had the largest cumulative market for solar open access as of June 30, followed by Rajasthan, Madhya Pradesh, Andhra Pradesh, and Tamil Nadu. Many firms are attempting to meet their power needs through renewable energy sources. However, regulatory inconsistency and policy U-turns have hampered the growth of the open-access market.

State governments are also imposing new fees or raising existing fees to retain high-paying customers.

For the market to scale, open access project developers believe that state-by-state uniform regulations and long-term policies without retroactive changes and fees are required.

In the states examined for this report, the average open access tariff ranged from Rs 3.50 to Rs 5.00 per kWh, with a yearly escalation of 1-2% depending on contract terms.

The report also mentions short-term transactions like day-ahead market (DAM), bilateral contracts, and real-time market (RTM) within the open access segment.

The top five states are compared based on the amount of electricity they sell and buy using each model.

With global commitments like RE100, Science-Based Targets initiative (SBTi), and environmental, social, and governance (ESG), C&I entities are attempting to meet a significant portion of their power demand through renewable energy sources (ESG).

Image Source

---

Also read: ISRPL invites bids for over 2.9 MW rooftop solar systems in Panipat

Also read: Adani Group, RIL and 17 other companies bid for making solar modules