India added 513 MW of new open access solar capacity in the first quarter (Q1) of the calendar year (CY) 2022, registering a growth of 58% quarter-over-quarter (QoQ), compared to 324 MW installed in Q4 2021. The year-over-year (YoY) installations increased by 22% compared to 422 MW in Q1 2021.
The numbers were revealed in Mercom India Research’s newly released report Mercom India Solar Open Access Market Report Q1 2022.
At the end of March 2022, the cumulative installed solar capacity in the open access market stood at nearly 5.7 GW. The top five states in terms of open access installations accounted for 73% of the country’s cumulative open access installations.
The country’s development pipeline of open access solar projects is 2 GW at the end of Q1 2022.
The top five states accounted for 86% of the total installations for the quarter.
Karnataka was the largest market in Q1, accounting for 30% of the total open access installations. The state accounted for 37% of the total installations.
Maharashtra was the second-largest market in Q1 2022, with a massive jump of 131% QoQ in solar open access installations compared to Q4 2021.
Gujarat accounted for 12.7% of the market, making it the third-largest market.
The success of open access in Karnataka may be attributed to the streamlining of open access regulations, timely DISCOM approvals, early commissioning of projects, and the spurt in captive projects due to cost-saving benefits.
With the extension of the Approved List of Models and Manufacturers (ALMM) order for open access projects to October 1, 2022, and the Basic Customs Duty (BCD) effective from April 1, 2022, installers have been in a hurry to commission the projects to avoid procurement challenges.
The report analyzes various short-term markets, such as the Day-Ahead Market (DAM), Green Day-Ahead Market (GDAM), Term-Ahead Market, Green Term-Ahead Market, and the Real-Time Market, which have been witnessing a growth in the recent past.
In Q4 2021, the GTAM market had witnessed a decline of nearly 49% in terms of volumes traded. Green Energy in the Term-Ahead Market traded via the Indian Energy Exchange (IEX) registered a decline of about 3% QoQ in prices.
The IEX resumed renewable energy certificate (REC) trading in November last year after a gap of nearly 16 months after getting permission from the Central Electricity Regulatory Commission and the Appellate Tribunal for Electricity.
The report gives a detailed account of the relationship between the volume and price of green power transactions in the short-term market.
“Commercial and industrial customers are realizing that open access has the dual advantage of climate mitigation and reduction in operating cost. Developers are also wading through policy challenges to ensure consumers reap the benefits. The green energy open access rules could just break this logjam and pave the way for the open access solar market to explode,” commented Priya Sanjay, Managing Director at Mercom India.
The report provides an overview of the solar open access business, retail electricity tariff, and the open access charges and costs for the following states: Karnataka, Rajasthan, Maharashtra, Madhya Pradesh, Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Telangana, Haryana, Gujarat, Odisha, Chhattisgarh, Uttarakhand, Punjab, Himachal Pradesh, and Kerala.
The report also gives an overview of banking policies for Haryana, Rajasthan, and Gujarat.
It also includes opinions of open access installers across the country.
As per the report, Q2 2022 is forecast to see good growth as there are no restrictions on the use of imported modules (which are not in the ALMM list) for the projects.
Key Highlights from Mercom India Research’s India Solar Open Access Market Report Q1 2022:
- India added 513 MW of solar open access capacity in Q1 2022 installations, showcasing an increase of 58% QoQ and 22% YoY increase
- As of March 2022, the total installed solar capacity in the open access segment crossed 5.7 GW
- The top five states contributed to 86% of all open access installations in Q1 2022
- Karnataka had the highest solar open access installations in Q1 2022, accounting for 30% of the installations in Q1 2022
- Maharashtra surpassed Tamil Nadu and Uttar Pradesh to become the second-largest state for cumulative open access solar installations
- Maharashtra had the second-largest installations in Q1 2022, with an impressive 131% (QoQ) increase
- Trading renewable energy through the green term-ahead market saw a 49% decrease in volume through October, November, and December 2021
‘Mercom India Solar Open Access Market Report Q1 2022’ is 116 pages and covers vital information and data on the market. For the complete report, please visit: https://mercomindia.com/product/india-solar-open-access-market-report-q1-2022