Western Odisha Could be the Next Hot Spot for Solar Open Access Installations

Odisha has significant potential for solar open access due to large-scale industries in the western region. The distribution company, TP Western Odisha Distribution (TPWODL), has the state’s lowest wheeling charge and cross subsidy surcharges.

For the financial year 2022-23, the wheeling charges for consumers under TPWODL is ₹0.77 (~$0.0099)/kWh. The cross-subsidy surcharge for high-tension (HT) consumers is lower by 30.2% compared to the previous year. The cross-subsidy surcharge for extra high-tension (EHT) consumers has been lowered by 5.4%.

Rourkela in the Sundergarh district of western Odisha is an industrial hub. The city is home to several steel, agrotech, and power companies. These large industries are potential off-takers of open access power. These factors make the western Odisha favorable to open access installations.

Odisha installed 17 MW of open access solar in the first quarter of the calendar year 2022, according to Mercom India Research’s newly released report Mercom India Solar Open Access Market Report Q1 2022. The total open access solar installed capacity in the state is 49 MW.

The state is ranked seventh for open access installations in the first quarter of 2022 and twelfth in cumulative open access installations.

Odisha Energy Regulatory Commission released a tariff order for FY 2022-23 for HT and EHT commercial and industrial (C&I) consumers. For HT consumers with load factors less than or equal to 60% and consumers with load factors over 60%, tariffs at ₹5.85 (~$0.076)/kWh and ₹4.75 (~$0.061)/kWh was retained.

Similarly, for EHT consumers with load factors less than or equal to 60% and consumers with load factors more than 60%, tariffs remained at ₹5.80 (~$0.075)/kWh and ₹4.70 (~$0.061)/kWh.

In Odisha, power purchase agreements (PPA) above 12 years but not exceeding 25 years are considered long term, while PPAs over three months but not exceeding three years are medium term. PPAs not exceeding one month are defined as short-term.

In September 2020, OERC announced the revised cross-subsidy surcharge, wheeling, and transmission charges applicable for consumers availing of conventional power through open access. The charges are for the use of intrastate transmission and distribution systems.

‘Mercom India Solar Open Access Market Report Q1 2022’ 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.

Email: info@mercomindia.com to consult with the Mercom team about open access opportunities across India.