Top five states accounted for 86% of open access installations in Q1 2022
In Q1 2022, India added 513 MW of solar open access capacity, 58% higher quarter-over-quarter (QoQ) compared to 324 MW installed in Q4 2021. Year-over-year (YoY) installations increased 22% compared to 422 MW in Q1 2021, according to Mercom India Research’s newly released report - Mercom India Solar Open Access Market Report Q1 2022.
As of March 2022, cumulative installed solar capacity in the open access market was over 5.7 GW. The top five states made up 73% of the country's cumulative open access solar installations.
The development pipeline of open access solar projects in the country was over 2 GW as of Q1 2022.
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The top five states made up 86% of total installations during the quarter. Karnataka was the top state, accounting for 30% of installations during the quarter and 37% of cumulative installations in the country. The streamlining of open access regulations, timely DISCOM approvals, early commissioning of projects, and the increase in captive projects due to cost-saving benefits drove the open access segment in the state.
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The report details various short-term markets such as the Day-Ahead Market (DAM), Green Day-Ahead Market (GDAM), Green Term-Ahead Market (GTAM), Term-Ahead Market (TAM), and the Real-Time Market (RTM), all of which have been experiencing a surge in activity.
The GTAM market witnessed a 49% decrease in volumes traded through October, November, and December 2021. October had the highest traded volume, while November realized the lowest market-clearing price. Green energy in the term ahead market traded via the IEX saw a 3% decrease in prices QoQ.
The relationship between the volume and price of green power transactions in the short-term market has been detailed in the report.
“Commercial and industrial consumers are realizing that open access solar has the dual advantage of climate mitigation and reducing their operating cost. Developers are also wading through policy challenges to ensure consumers reap the benefits. The green energy open access rule 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 a detailed analysis of the solar open access business overview, retail electricity tariff, and open access charges and costs for Karnataka, Rajasthan, Maharashtra, Madhya Pradesh, Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Telangana, Haryana, Gujarat, Odisha, Chhattisgarh, Uttarakhand, Punjab, Himachal Pradesh, and Kerala.
The average PPA price in the above states, the net landed costs, and the open access policies and regulations released in Q1 2022 are featured in the report.
The highlights on the banking policies have been added in this quarter’s report for three states - Haryana, Rajasthan, and Gujarat.
The report also highlights the views and opinions of the top open access installers in the country.
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, a 58% QoQ increase and a 22% YoY increase
- As of March 2022, the total installed solar capacity in the open access segment was over 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 capacity installed, accounting for 30% of installations during the quarter
- Maharashtra surpassed Tamil Nadu and Uttar Pradesh to become the second-largest state for cumulative open access solar installations
- The second-highest installations in Q1 2022 was in Maharashtra, with an impressive 131% (QoQ) increase
- The volume of renewable energy trading in the green term-ahead market dipped 49% through October, November, and December 2021
https://mercomindia.com/product/india-solar-open-access-market-report-q1-2022
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