Gujarat added the sixth-highest solar open access capacity in Q2 2024, according to Mercom’s Q2 2024 India Solar Open Access Market Report.

In Q2 of 2024, about 1.8 GW of solar open access capacity was added in the country, a marginal 2.5% drop QoQ and up nearly 152% year over year (YoY).

Gujarat contributed 9.2% to the quarterly capacity additions, with wind-solar hybrid power projects comprising over 36% of the state’s installations. However, the installations were 56.9% lower YoY and 9.9% QoQ.

The commissioning of a substantial capacity of solar and wind-solar hybrid power projects was delayed as several developers in the state awaited a potential exemption from the Approved List of Models and Manufacturers, which never materialized. These installation delays impacted the state’s quarterly capacity additions.

Solar open access installations in the country in the first half (1H) of 2024 reached 3.6 GW, up 153% from the 1.4 GW installed in 1H 2023. The capacity added in the year’s first half surpassed any previous half-yearly and annual installations.

Gujarat accounted for 9.6% of the half-yearly capacity additions, with wind-solar hybrid power projects comprising 63.3% of the installations. However, the state’s capacity additions dropped 34.1% compared to 1H 2023.

India’s cumulative solar open access capacity was 16.3 GW as of June 2024, with Gujarat accounting for 9.2% of the installations. As of June 2024, the state ranked fourth for cumulative installed capacity. Wind-solar hybrid power projects accounted for 49.1% of the state’s cumulative installed solar open access capacity.

Policy Support

There has been a significant increase in hybrid power projects in Gujarat following changes to its wind-solar hybrid energy policy. The policy offers favorable banking provisions for wind-solar hybrid power projects with monthly energy banking.

In Q1 2024, Gujarat’s regulatory commission notified green energy open access regulations, paving the way for consumers with a sanctioned load of over 100 kW and above to add solar open access capacity. The rules specified the application procedure, eligibility criteria, allotment priority, curtailment policy, the procedure for granting open access, day-ahead open access transactions, banking, and other open access charges.

In Q2 2024, the state’s landed solar open access cost for third-party projects of high-tension industrial consumers was the tenth lowest. However, due to the state’s low electricity tariffs, these consumers did not benefit from any savings with projects under third-party sale.

The captive and group captive models offer the highest savings due to exemptions in cross-subsidy and additional surcharges. Commercial and Industrial consumers in the state save up to approximately ₹0.84 (~$0.016)/kWh or nearly 20% of the DISCOM’s tariff at 11 kV with captive and group captive solar projects.

The streamlined policy framework and approval process have driven market competition and capacity additions in the state. Companies in several energy-intensive sectors in the state can switch to captive and group captive models, which could result in substantial cost savings. Furthermore, the state distribution companies offer prompt project approvals.

According to Mercom India Research, wind-solar hybrid power projects accounted for 43.1% of the state’s project pipeline.

Mercom’s India Solar Project Tracker provides all vital project details for installed and pipeline captive, group captive, third-party, and projects under solar parks in the country.

The Q2 2024 Mercom India Solar Open Access Market Report is 58 pages long and covers state-wise open access charges, electricity tariffs, power purchase agreement tariffs, installed and pipeline project capacities, and policy updates, along with other critical information and data on the market.