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					</table>Commercial and industrial (C&amp;I) consumers benefit significantly from sourcing renewable energy through open access arrangements. In addition to an assurance of reliable power supply and savings on energy costs, they can also make their operations more sustainable and reduce their carbon footprint.
The <a href="https://mnre.gov.in/" target="_blank" rel="noopener">Ministry of New and Renewable Energy</a>&#8216;s green energy open access regulations have significantly boosted India&#8217;s solar open access market. In the first quarter of 2024 alone, India achieved 1.8 GW of solar open access capacity, marking a 152% year-over-year increase in installations, according to the <a href="https://www.mercomindia.com/product/q1-2024-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">Q1 2024 Mercom India Solar Open Access Market Report</a>.
At Mercom India&#8217;s recent C&amp;I Clean Energy Meet in Coimbatore, Santhosh T, Senior Manager-BD, <a href="https://sunsure-energy.com/" target="_blank" rel="noopener">Sunsure</a>, highlighted three key aspects that C&amp;I consumers must consider before opting for solar open access: regulatory alignment, business needs, and a streamlined process facilitated by a renewable energy developer.
Since open access is heavily regulated, consumers must ensure they meet the eligibility criteria in terms of capacity. Consumers are eligible for open access if they have a capacity of 1 MW and above. However, with the introduction of green energy open access regulations, this minimum requirement has been reduced from 1 MW to 100 kW.
Santhosh referred to additional considerations, such as the prerequisites set by the Tamil Nadu Electricity Regulatory Commission, the need for an availability-based tariff (ABT) meter, and connections to Tamil Nadu Generation and Distribution Corporation (TANGEDCO) and Tamil Nadu Transmission Corporation (TANTRANSCO). Moreover, verifying whether any ongoing judicial proceedings might affect the process is important.
Businesses must understand their energy needs. While rooftop solar typically displaces 15%- 20% of an industrial unit&#8217;s consumption, open access can cover 20-60%, depending on the state. In Tamil Nadu, this can extend up to 60%.
Companies must navigate open access regulations, manage the request for proposal (RfP) process, and structure long-term contracts that may last up to 25 years.
Santhosh pointed out that the market potential for C&amp;I open access over the next eight years is projected to reach 80 GW. This represents a significant opportunity for developers, whether through inter-state or intra-state connections, though managing supply constraints remains a challenge.
Addressing the advancements in Battery Energy Storage Systems (BESS), Jefry Sahayam, BDM &#8211; South India (DG), <a href="https://www.jinkosolar.com/en/" target="_blank" rel="noopener">Jinko Solar</a> emphasized the importance of enhancing the productivity of existing systems. He noted that batteries have become a cost-effective alternative to diesel generators, offering consumers a reasonable return on investment. &#8220;With a payback period now reduced to 7-8 years, the challenge remains the 25% peak charges. BESS will become even more viable as prices continue to fall, attracting increased investment.&#8221;
For industries such as data centers, where minimizing power disruptions is critical, Sahayam highlighted the adoption of lithium ferro-phosphate (LFP) batteries in solar systems with BESS. These batteries help ensure a smooth transition during power cuts. He also mentioned that industries are increasingly shifting from diesel generators to BESS to reduce carbon emissions.
BESS installation costs have dropped significantly this year. Manufacturers are optimistic that further price reductions will attract more customers as the payback period is shortened.
The next Mercom India C&amp;I Clean Energy Meet event will be held in <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2024-pune" target="_blank" rel="noopener">Pune</a> on September 20, 2024. You can register <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2024-pune/contact" target="_blank" rel="noopener">here</a>.
<a href="mailto:sales@mercomindia.com?subject=Seeking%20Solar%20Installation%20Guidance%20and%20Vendor%20Recommendations%20for%20Business" target="_blank" rel="noopener">Contact us</a> if you plan to install solar and need guidance or vendor recommendations.

What C&I Units Should Know Before Choosing Open Access Solar

Amid the Coronavirus (COVID-19) outbreak, the Solar Energy Corporation of India (<a href="https://seci.co.in/" target="_blank" rel="noopener noreferrer">SECI</a>) has extended the bid submission deadline for its tender for 14 MW of solar projects with 42 MWh battery energy storage system (BESS) at Leh and Kargil. The project will be developed under the Prime Minister Development Package (PMDP).
The date for the submission of bids has now been extended from April 16, 2020, to June 1, 2020. In February 2020, <a href="https://mercomindia.com/seci-isues-tender-solar-with-42-mwh-battery-storage-leh-kargil/" target="_blank" rel="noopener noreferrer">Mercom</a> reported that the last date for the submission of bids was March 16, 2020, and the pre-bid meeting was scheduled to be held on February 17, 2020.
In its notification, SECI said, “It’s evident that the global outbreak of the pandemic Novel Coronavirus, COVID-19, has significantly hampered the functioning of all sectors including institutions, commercial establishments, offices and various manufacturing units are also at a standstill. India is phasing through this crucial time, having a complete lockdown of all the states and union territories (UTs) until April 14, 2020. In such a situation, the site visit for the subject RfS has already been postponed for an indefinite period.”
SECI had initially <a href="https://mercomindia.com/seci-tenders-14-mw-solar-42-mw-bess/" target="_blank" rel="noopener noreferrer">issued an NIT</a> for the tender in March 2019.
The projects should be developed on a build-own-operate basis, and the selected project will be given a viability gap funding (VGF) in line with the terms and conditions of this RfS. The upper limit for the VGF to be quoted by a bidder has been kept at ₹130 million ($1.81 million) for 1 MW solar project with a battery storage of 3 MWh.
SECI will release 50% of the VGF after the supply of the equipment at the project site, and the remaining 50% will be released after the successful commissioning of the project.
The tariff to be paid to the successful solar power developer (SPD) by the buying entity has been set as ₹2.00 ($0.028)/kWh at the interconnection point, which will remain flat for the entire period of the PPA.
The projects should be developed on a build-own-operate basis, and the selected project will be given a viability gap funding (VGF) in line with the terms and conditions of this RfS. The upper limit for the VGF to be quoted by a bidder has been kept at ₹130 million ($1.81 million) for 1 MW solar project with a battery storage of 3 MWh. SECI will release 50% of the VGF after the supply of the equipment at the project site, and the remaining 50% will be released after the successful commissioning of the project.
The land for setting up the solar projects with battery storage will be facilitated and made available to the developer by the Ladakh Renewable Energy Development Agency (LREDA) and Kargil Renewable Energy Development Agency (KREDA) separately. The LREDA &amp; KREDA will also provide the required land for the establishment of a substation.  The declared annual capacity utilization factor (CUF) should not be less than 17%.
Owing to the 21-day nationwide lockdown, the government has announced several changes and deviations in the existing policies, including the ones related to renewable energy. Track the latest developments and initiatives taken by the government to fight the economic repercussions of the pandemic in the renewable industry <a href="https://mercomindia.com/mercom-coronavirus-live-updates-clean-energy-india/" target="_blank" rel="noopener noreferrer">here</a>.
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Image credit: Energiaastatcon / CC BY-<a href="https://creativecommons.org/licenses/by-sa/4.0" target="_blank" rel="noopener noreferrer">SA</a>

SECI Extends Bidding Deadline for its Solar Tender with Battery Storage in Leh and Kargil

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