Domestic open access solar capacity addition doubles to 1.8 GW in Jan-Mar: Mercom

Open access solar installations in India doubled to 1.8 gigawatts (GW) in first quart of 2024, supported by reduced module costs, according to US-based Mercom Capital. Solar power through open access involves power producers establishing solar plants to supply green energy to consumers. This increase, from 909.3 megawatts (MW) in fourth quarter of 2023, brings the cumulative installed capacity to 14.3 GW as of March 2024. 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. Additionally, reduced power purchase agreement (PPA) prices incentivized consumers to adopt solar open access.

The demand for open access to green energy, especially solar, is driven by financial savings and the push for renewable energy in power procurement, with corporations leading climate change mitigation strategies. Green energy open access without regulatory restrictions could significantly help India meet its non-fossil fuel targets, said Ms. Priya Sanjay, Managing Director at Mercom India. In first quarter of 2024, Rajasthan led with 28% of capacity additions, followed by Andhra Pradesh and Maharashtra with 21% and 12%, respectively. As of March 2024, over 18 GW of solar open-access projects were in development or pre-construction, with 74% located in Karnataka, Rajasthan, Maharashtra, Tamil Nadu, and Andhra Pradesh.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.