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India installed around 1.9 GW of open access solar capacity in the first nine months (9M) of the calendar year (CY) 2022, an increase of 96% year-over-year (YoY), according to Mercom India Research’s newly released Mercom India Solar Open Access Market Report Q3 2022.
Installations in 9M surpassed the annual capacity additions over the past years.
In Q2 and Q3, open access project developers focused on the early commissioning of contracted project capacities due to uncertainty around the mandatory use and availability of the modules enlisted in the ‘Approved List of Models and Manufacturers’ (ALMM).
The first quarter saw a significant increase in capacity addition as developers focused on avoiding the project cost increase due to the imposition of basic customs duty (BCD) on imported solar modules and cells.
Expansion in solar projects during 9M resulted from high electricity tariffs, timely approvals by distribution companies (DISCOMs), and a favorable regulatory framework for open access in Karnataka, Maharashtra, and Tamil Nadu.
In the third quarter (Q3) of CY22, India added 596 MW of solar open access capacity, a YoY increase of 91%. However, installed capacity fell by 12.5% quarter-over-quarter.
The total installed solar capacity in the open access segment at the end of Q3 CY22 was over 7 GW. The pipeline of projects under development and pre-construction phase is over 5 GW. The top five states contributed over 83% of all open access installations in Q3 2022.
During the period, Karnataka led the installations, with an addition of 198 MW, accounting for over 33% of total capacity.
The top five states accounted for over 74% of the country’s cumulative open access solar installations. Karnataka remained the top state even here, with a total solar open access capacity of approximately 2.7 GW, accounting for almost 38% of the country’s installations. Maharashtra came in second with 801 MW, making up around 11% of the total capacity.
Andhra Pradesh led the Green Day Ahead Market (G-DAM) in terms of power sold through the exchange, with 359 MU accounting for nearly 33.5% of the market.
Punjab was the leading energy procurer from the G-DAM with 309 MU, followed by Maharashtra with 124 MU, representing 28.8% and 11.6% of the total power purchased.
“The demand by corporates for solar under the open access route has been phenomenal. The growth would have been steeper if not for the supply constraints and price increase. The pipeline of projects to be commissioned is impressive and bigger than ever. While the demand has mostly been from large corporates, there is a huge untapped market of SMEs and MSMEs due to lack of awareness,” commented Priya Sanjay, Managing Director at Mercom India.
The report offers a detailed analysis of the solar open access business. Tamil Nadu, Uttar Pradesh, Rajasthan, and Kerala released tariff orders for FY23. The report comprehensively covers open access-related charges and retail supply tariffs for these states and their market size.
The average power purchase agreement (PPA) prices, net landed costs, open access policies, and regulations released in Q3 2022 are featured in the report.
The report also highlights the views of the top open access installers across the country during the quarter.
Key Highlights from Mercom India Research’s India Solar Open Access Market Report Q3 2022:
- In 9M 2022, India added around 1.9 GW of open access solar, a YoY increase of approximately 96%
- In Q3 2022, 596 MW of open access solar were added in India, down 12.5% QoQ and 91% increase YoY
- Karnataka was the leading state, with 198 MW added in Q3 2022
- As of September 2022, the total installed solar capacity in the open access segment was over 7 GW.
- The pipeline of solar open access projects is over 5 GW.
Mercom India Solar Open Access Market Report Q3 2022 report is 72 pages and covers vital information and data on the market. For the complete report, visit: https://mercomindia.com/product/india-solar-open-access-market-report-q3-2022/