Open Access Solar Installation Grew By 664 Percent In April-June: Mercom

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Uttar Pradesh had the highest number of installations in the solar open access segment, followed by Maharashtra and Tamil Nadu

Solar open access installations in India grew by 664 per cent year-on-year (YoY), reaching to 209 MW in the second quarter of 2021 from 27 MW a year ago, as per a Mercom report.

As per the Mercom India Solar Open Access Market Report Q2 2021, cumulative solar installations in the open-access market have now surpassed 4.5 GW as of June 2021.

The pipeline of solar open access projects under development and pre-construction is estimated to be about over 1 GW, the report added.

The top states for solar open access installations have been analysed based on the solar open-access project (captive/ group-captive/ third-party) installations, Discoms ratings, retail power tariff (industrial and commercial customers) structure, open access charges, and costs, it noted.

Due to the second wave of COVID, the quarter-over-quarter installations declined by about 50 per cent in Q2 2021 (April-June) compared to the preceding quarter.

However, it said that with the pending projects in the pipeline and the government’s initiative to promote green open, solar open access projects, installations are expected to rise.

Installations in the first half of 2021 (January to June) totalled about 628 MW of solar open access, a 12-fold (1,230 per cent) growth compared to 47 MW installed in first half of 2020.

In the first half of 2021, Uttar Pradesh had the highest number of installations in the solar open access segment, followed by Maharashtra and Tamil Nadu.

As of June 30, 2021, Karnataka is the largest market for solar open access cumulatively, followed by Rajasthan, Madhya Pradesh, Andhra Pradesh, and Tamil Nadu. The top five states account for approximately 73 per cent of India’s total solar open access market.

In Q2 2021, the largest solar open access projects capacity was developed in Uttar Pradesh, followed by Chhattisgarh and Maharashtra. The top three states accounted for 83 per cent of installations in the quarter.

According to the report, more conducive policies for setting up open access projects can be found in Uttar Pradesh, Rajasthan, and Chhattisgarh. The commercial segment has potential for captive open access projects in Maharashtra.

“DISCOMs need to realise that the demand for renewables cannot be curtailed and have to reconsider the consumers’ right to combatting climate change and choosing their suppliers of power,” commented Priya Sanjay, Managing Director of Mercom India.

“The power demand from C&I entities is growing, and eventually, the states will have to invest in new power generation. On the other hand, open access will not only generate revenue without DISCOMs investing but also bring in large investments from around the world.”

Many corporates that lack sufficient space to meet a more significant percentage of power demand opt for open access, and the demand for procuring renewables in the open market has only been growing every quarter, it added.

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