Solar Open Access Installations in India Doubles to 1.8 GW in Q1 2024

June 06, 2024:  In the first quarter (Q1) of the calendar year (CY) 2024, India added over 1.8 gigawatts (GW) of solar open access capacity, a twofold increase from 909.3 megawatts (MW) in Q4 2023, according to the newly released report, Q1 2024 Mercom India Solar Open Access Market Report. Installations increased 152% year-over-year (YoY).

In Q1, solar open access developers benefited from lower Chinese module prices and the suspension of the Approved List of Models and Manufacturers (ALMM) order for projects commissioned through March 2024. Many developers had delayed their module procurements until Q4 2023, anticipating lower prices, and subsequently commissioned their projects in Q1 2024, resulting in a sharp rise in installations. Additionally, lower power purchase agreement (PPA) prices, due to reduced project costs, further incentivized consumers to adopt solar open access.

“Demand for green energy open access, especially solar, has been mounting, driven by the financial savings and initiatives to add renewable in the power procurement mix. An additional push comes from the corporates leading climate change mitigation strategies. If not for the regulatory restrictions, green energy open access could be the driving force that helps India meet its non-fossil fuel targets,” commented Priya Sanjay, Managing Director at Mercom India.

In Q1 2024, Rajasthan led solar open access capacity additions, accounting for almost 28% of the quarter’s installation. Andhra Pradesh and Maharashtra ranked second and third, accounting for 21% and nearly 12% of capacity additions.

As of March 2024, the cumulative installed solar open access capacity stood at 14.3 GW.

Karnataka remained the top state for cumulative installations, accounting for nearly 30% of solar open access capacity added in the country as of March 2024. Maharashtra and Tamil Nadu ranked second and third, accounting for 13% and 11% of cumulative installations.

The pipeline of solar open access projects under development and in the pre-construction phase was over 18 GW as of March 2024. Almost 74% of pipeline projects were in Karnataka, Rajasthan, Maharashtra, Tamil Nadu, and Andhra Pradesh.

Adani Hybrid Energy was the leading seller in the Green Day-Ahead Market (G-DAM), accounting for approximately 14% of electricity sold.

Arcelor Mittal was the leading procurer from G-DAM, contributing to around 36% of electricity purchased.

The cleared volume of renewable energy certificates (RECs) traded on the Indian Energy Exchange (IEX) increased over 133% quarter-over-quarter (QoQ).

The volume traded in the Green Term Ahead Market (G-TAM) on IEX rose 14% QoQ.

A detailed analysis of the solar open access market, retail electricity tariffs, PPA prices, and open access charges and costs for seventeen states have been covered in the report.

Key Highlights from Mercom’s Q1 2024 India Solar Open Access Market Report

  • In Q11.8 GW of solar open access was added, up 100% QoQ and 152% YoY
  • Rajasthan was the leading state, accounting for 28% of capacity additions in Q1
  • Andhra Pradesh and Maharashtra contributed 21% and 12% to the quarter’s installations
  • As of March 2024, the cumulative installed solar open access capacity was 14.3 GW
  • The top five states comprised over 71% of cumulative solar open access installations
  • As of March 2024, the pipeline of solar open access projects was 18 GW

The Q1 2024 Mercom India Solar Open Access Market Report is 82 pages long and covers vital information and data on the market. For the complete report.

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