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India added 1.3 GW of new open access solar capacity in the first half (1H) of the calendar year (CY) 2022, registering a growth of 97% compared to 638 MW installed in 1H 2021. This is the second-highest installation figure for the six months of any year to date.
The numbers were revealed in Mercom India Research’s newly released report Mercom India Solar Open Access Market Report Q2 2022.
The country added 680 MW of open access solar capacity in Q2 2022, marking an increase of 18% quarter-over-quarter (QoQ) compared to 575 MW installed in Q1 2022. The capacity addition is an increase of 223% over the 210 MW installed during the same period last year.
The cumulative installed open access solar capacity at the end of June 2022 stood at 6.5 GW.
The top five states accounted for 73% of the cumulative open access solar capacity installations.
As per the report, the development pipeline of solar open access projects in India was about 2.8 GW at the end of Q2 2022.
Increased focus on renewable purchase obligation (RPO) compliance and renewable energy goals set by commercial and industrial (C&I) consumers were the main factors driving the growth of solar open access during the quarter. Module supply concerns post the implementation of the Approved List of Models and Manufacturers (ALMM) increased the developer’s urgency to add to open access capacity despite a 40% basic customs duty (BCD) on modules and components.
According to the report, conducive policies and timely approvals by distribution companies (DISCOMs) have pushed the solar expansion through open access in Karnataka, Chhattisgarh, and Tamil Nadu.
During Q2 2022, the top five states accounted for 91% of the total installations, with Karnataka dominating the market with 44% during the quarter. The state also accounted for 38% of the cumulative installations in the country.
Karnataka accounted for nearly 59% of the Green Day-Ahead Market (G-DAM) in terms of power sold.
The report points out that the Green Term-Ahead Market (G-TAM) witnessed a 39% decrease in volumes traded in January, February, and March 2022. February had the highest traded volume, whereas March recorded the highest clearing price during Q1 2022.
“The green energy open access rules hold a lot of promise, and it is up to the states now to walk the talk. The demand for renewables through open access is mounting as corporates with commitments to RE100 goals are driving the uptake of renewables and bringing along their supply chains. Procuring renewable energy through open access is also helping businesses reduce their operating costs and carbon emissions,” commented Priya Sanjay, Managing Director at Mercom India.
The report provides a detailed analysis of the solar open access business, retail electricity tariff, and open access charges and costs for 17 states, with Assam being the latest addition.
Average power purchase agreement prices, net landed costs, and open access policies and regulations released in Q2 2022 are also featured in the report.
The report also contains the views and opinions of top open access installers across the country during the quarter.
Key Highlights from Mercom India Research’s India Solar Open Access Market Report Q2 2022:
- Open access solar installations in 1H 2022 totaled 1.3 GW, an increase of 97% compared to 1H 2021
- India added 6,89 MW of open access solar capacity in Q2 2022, an 18% QoQ increase and 223% YoY increase
- As of June 2022, the total solar capacity installed in the open access segment was over 6.5 GW
- About 2.8 GW of projects are under development and in the pre-construction phase
- The top five states contributed to 91% of open access solar installations in Q2 2022
- The highest solar capacity added during the quarter under open access was in Karnataka
- Karnataka has the largest pipeline of open access solar projects under development
‘Mercom India Solar Open Access Market Report Q2 2022’ is 129 pages and covers vital information and data on the market. For the complete report, visit: https://mercomindia.com/product/india-solar-open-access-market-report-q2-2022/