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					</table><p>Solar open access installations grew by 24% in the second quarter (Q2) of the calendar year (CY) 2023 compared to the previous quarter, adding 712 MW of capacity, according to the recently published <a href="https://www.mercomindia.com/product/q2-2023-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">Q2 2023 Mercom India Solar Open Access Market Report</a>.</p>
<p>Throughout the quarter, module prices continued to decline, which reduced project costs and enhanced the attractiveness of power purchase agreements (PPAs), thereby boosting the growth of solar open access capacity.</p>
<p>Compared to Q2 2022, when developers hurried to complete projects due to concerns about module supply after the Approved List of Models and Manufacturers (ALMM) order became mandatory for solar open access installations from October 1, 2022, installations decreased by 3.6% in the quarter.</p>
<p style="text-align: center;"><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/Open-Access-Article-1.png"><img decoding="async" loading="lazy" class="alignnone wp-image-58389 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/Open-Access-Article-1.png" alt="Open Access Article 1" width="701" height="345" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/Open-Access-Article-1.png 701w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/Open-Access-Article-1-300x148.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/Open-Access-Article-1-650x320.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/Open-Access-Article-1-624x307.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/Open-Access-Article-1-600x295.png 600w" sizes="(max-width: 701px) 100vw, 701px" /></a></p>
<p>&#8220;Cost is not the only factor now for the commercial and industrial (C&amp;I) segment. They are focused on achieving their decarbonization goals on time. The growing demand from the C&amp;I segment has led to an increase in installations. The decrease in module prices was another major reason for installations going up,&#8221; commented Priya Sanjay, Managing Director at Mercom India.</p>
<p>The main drivers behind the increase in solar open access capacity additions across states were the captive and group captive models. These projects benefit from exemptions on cross-subsidy and additional surcharges, resulting in greater cost savings for consumers than other forms of open access transactions relative to the state&#8217;s retail electricity tariffs.</p>
<p>&#8220;Renewable energy has become an integral part of the C&amp;I segment. They can only achieve this through rooftop solar adoption, green tariffs by DISCOMs, or procuring through open access. In 2021, open access projects accounted for about 14% of the total utility-scale projects installed; in 2022, it was 21%, and right now (1H), it is 36%. Foreign direct investment is readily available, and banks are also lending to green open access projects. So, things are improving on all fronts,&#8221; Priya Sanjay explained.</p>
<p>In Q2 2023, the highest solar open access installations were in Gujarat, with more than 46% of the total capacity additions. This was followed by Karnataka with more than 21% and Tamil Nadu with 10%.</p>
<p>The top five states accounted for over 96% of all installations during that quarter.</p>
<p style="text-align: center; width: 100%;"><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/Open-Access-Article-2-1.png"><img decoding="async" class="alignnone wp-image-58391 size-full" style="width: 60%;" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/Open-Access-Article-2-1.png" alt="Open Access Article 2" width="60%" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/Open-Access-Article-2-1.png 398w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/Open-Access-Article-2-1-150x150.png 150w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/09/Open-Access-Article-2-1-100x100.png 100w" sizes="(max-width: 398px) 100vw, 398px" /></a></p>
<p>&#8220;In Gujarat, the Gujarat Electricity Regulatory Commission amended the wind-solar hybrid policy. The state has large power consumers, and Gujarat is a well-established industrial state. The health of distribution companies is also very good. In Q2 2023, wind-solar hybrid projects accounted for 86.6% of the total installations in the state,&#8221; Priya Sanjay noted.</p>
<p>Diverse sectors such as automotive, mining, and electronic manufacturing in Karnataka took to solar open access during the quarter. In April 2023, the state introduced amendments to its banking policy, enhancing transparency in open access charges and improving the accuracy of open access power scheduling for load despatch centers.</p>
<p>The primary driver behind the surge in open access adoption in Tamil Nadu during the quarter was the state&#8217;s decision to increase the retail tariffs.</p>
<p><strong>1H 2023</strong></p>
<p>In the first half of 2023, India recorded an addition of 1.3 GW in solar open access capacity, a decrease of nearly 18% compared to the 1.6 GW installed in the same period in 2022.</p>
<p>By June 2023, India&#8217;s cumulative solar open access capacity had reached 9.8 GW.</p>
<p>Karnataka maintained its position as the leading state, representing more than 34% of the cumulative solar open access capacity at the end of 1H 2023. Maharashtra accounted for over 13%, and Tamil Nadu 10% of the total installed solar open access capacity.</p>
<p>The top five states contributed almost 73% of the cumulative open access solar installations.</p>
<p>At the end of Q2 2023, India had 9.2 GW of solar open access project pipeline in various stages of development.</p>
<p>Commenting on the impact of green open access on installations, Priya Sanjay said, &#8220;Most of the states have started implementing green open access regulations. However, each state has a different banking policy. Many states have increased the banking charges, which will impact the solar open access growth in the coming quarters to an extent.&#8221;</p>
<p>Karnataka emerged as the primary seller in the Green Day Ahead Market (G-DAM) within the short-term markets, commanding more than 57% of the market.</p>
<p>Maharashtra held the leading position in energy procurement from G-DAM, followed by the Damodar Valley Corporation, constituting 32% and 11% of the total power purchased.</p>
<p>The trading of Renewable Energy Certificates on the Indian Energy Exchange (IEX) saw a significant decline of nearly 47% from the previous quarter.</p>
<p>The report also noted that the volume traded in the Green Term Ahead Market (G-TAM) on the IEX fell by approximately 20% QoQ.</p>
<p>The report offers an in-depth analysis of the solar open access business landscape, retail electricity tariffs, and open access charges and costs for 17 states.</p>
<p>Additionally, the report includes information on the average PPA prices, net landed costs, and open access policies and regulations released in Q2 2023.</p>
<p>Furthermore, the report features insights and perspectives from leading open access installers across the country during the quarter.</p>
<p><strong>The &#8220;Q2 2023 Mercom India Solar Open Access Market Report&#8221; report is 151 pages long and covers vital information and data on the market. For the complete report, visit: <a href="https://www.mercomindia.com/product/q2-2023-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">https://www.mercomindia.com/product/q2-2023-mercom-india-solar-open-access-market-report</a></strong></p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a>
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India’s Solar Open Access Installations Up 24% QoQ in Q2 2023

<p>India’s solar open access installations totaled 209 MW in the second quarter (Q2) of 2021, a 664% year-over-year (YoY) increase compared to 27 MW in the same period last year, according to Mercom’s India Solar Open Access Market <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q2-2021">Report</a> Q2 2021.</p>
<p>Uttar Pradesh added the largest solar open access capacity in Q2 2021, followed by Chhattisgarh and Maharashtra. The top three states accounted for 83% of installations in the quarter.</p>
<p>Cumulative installations in the solar open access market have reached 4.5 GW as of June 2021.</p>
<p>Installations in Q2 declined 50% <a href="https://mercomindia.com/open-access-solar-projects-q1-2021/">compared</a> to the previous quarter (419 MW ) due to the impact of the second wave of COVID-19. However, they are expected to increase with over 1.1 GW projects in the pipeline. The government is promoting green open access under the ‘Draft Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2021.</p>
<p>The solar open access market installed 628 MW of capacity in the first half (1H) of 2021, a 12-fold growth compared to 47 MW installed in the same period last year. Uttar Pradesh led the way with the highest installations in 1H 2021, followed by Maharashtra and Tamil Nadu.</p>
<p>According to the report, Uttar Pradesh, Rajasthan, and Chhattisgarh currently have conducive open access policies. The commercial segment also has potential for captive open access projects in Maharashtra.</p>
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-29338" src="https://mercomindia.com/wp-content/uploads/2021/09/fdgfsdgv-1.png" alt="Mercom India Solar Open Access Market Report Q2 2021" width="541" height="347" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/fdgfsdgv-1.png 541w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/fdgfsdgv-1-300x192.png 300w" sizes="(max-width: 541px) 100vw, 541px" />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 73% of the total solar open access market in India.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2021/09/State-wise-Solar-Open-Access-Installations-in-Q2-2021-1-1.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-29323" src="https://mercomindia.com/wp-content/uploads/2021/09/State-wise-Solar-Open-Access-Installations-in-Q2-2021-1-1.png" alt="State-wise Solar Open Access Installations in Q2 2021 (%)" width="506" height="295" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/State-wise-Solar-Open-Access-Installations-in-Q2-2021-1-1.png 506w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/State-wise-Solar-Open-Access-Installations-in-Q2-2021-1-1-300x175.png 300w" sizes="(max-width: 506px) 100vw, 506px" /></a></p>
<p>According to the <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q2-2021">report</a>, the demand for procuring renewables in the open access market has increased every quarter. Many corporates are trying to meet their power demands through renewable energy sources.</p>
<p>However, regulatory inconsistency and policy U-turns have hindered the growth of the open access market. State governments are also levying new charges or increasing the existing charges to avoid losing high-paying consumers.</p>
<p>Open access project developers <a href="https://mercomindia.com/uniform-stable-policies-open-access/">believe</a> uniform regulations across states and long-term policies without retroactive changes and charges are necessary for the market to scale.</p>
<p>The average open access tariff in the states covered in this report ranged from ₹3.50 to ₹5.00 ($0.047- 0.068)/kWh with a yearly escalation of 1-2% depending on contract terms.</p>
<blockquote><p>“DISCOMS need to realize that the demand for renewables cannot be curtailed and have to reconsider the consumer’s right to combatting climate change and choosing their suppliers of power. The power demand from commercial and industrial 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 huge capital from around the globe,” said Priya Sanjay, Managing Director of Mercom India.</p></blockquote>
<p>The report also provides insight into short-term transactions such as day-ahead market (DAM), bilateral contracts, and real-time market (RTM) within the open access segment. The top five states are compared based on the electricity sold and purchased through each model.</p>
<p>Uttar Pradesh was the top seller in the DAM market in Q1 2021, while Gujarat was the leading purchaser in the DAM market in Q1 2021. The top markets for real-time and bilateral markets are covered in the report.</p>
<p>C&amp;I entities are trying to meet a significant portion of their power demand through renewable energy sources with global commitments like RE100, Science-Based Targets initiative (SBTi), and environmental, social, and governance (ESG). Lack of sufficient space to meet a more significant percentage of power demand has led many corporates to opt for open access. The need for procuring renewables in the open market has only been growing every quarter, the <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q2-2021">report</a> noted.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/harsh-shukla/" class="vcard author" rel="author"><span class="fn">Harsh Shukla</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft" src="https://mercomindia.com/wp-content/uploads/2022/02/Harsh-Shukla-293x300-1-new.jpg" width="99" height="102" /><a href="https://mercomindia.com/author/harsh-shukla/" target="_blank" rel="noopener"><strong style="color: #00b451">Harsh Shukla</strong> </a>is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.</p>
<p><a href="https://mercomindia.com/author/harsh-shukla/">More articles from Harsh Shukla.</a></p>
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664% Year-Over-Year Growth in Open Access Solar Installations in Q2 2021

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