India added 680 MW of open access solar installations in Q2 2022, the second-best quarter and 1H of all time
In the first half of 2022, India added 1.3 GW of open access solar, a 97% increase compared to 638 MW installed in 1H 2021, the second-highest recorded first half of any year, according to the newly released report by Mercom India Research: Mercom India Solar Open Access Market Report Q2 2022.
India added 680 MW of solar open access capacity in Q2 2022, an 18% increase quarter-over-quarter (QoQ) compared to 575 MW installed in Q1 2022. Year-over-year (YoY) installations increased 223% compared with 210 MW in Q2 2021.
As of June 2022, cumulative installed solar capacity in the open access market was over 6.5 GW. The top five states accounted for over 73% of the country’s cumulative open access solar installations.
The development pipeline of open access solar projects in the country was about 2.8 GW as of Q2 2022.
Increased focus on renewable purchase obligation (RPO) compliance and RE100 goals by commercial & industrial (C&I) companies drove up installations. Module supply concerns post-Approved List of Module Manufacturers’ (ALMM) imposition increased developer’s urgency to add to open access capacity despite a 40% Basic Customs Duty (BCD) on module and components, noted the report.
Conducive policies and timely approvals by distribution companies (DISCOMs) have supported solar expansion through the open access route in Karnataka, Chhattisgarh, and Tamil Nadu, according to the report.
The top five states made up 91% of total installations during the quarter. Karnataka dominated the market, accounting for 44% of installations during the quarter and 38% of cumulative installations in the country.
Karnataka also led the Green Day Ahead Market (G-DAM) in terms of power sold through the exchange, accounting for nearly 59% of the market.
According to the report, the Green Term Ahead Market witnessed a 39% decrease in volumes traded through January, February, and March 2022. February had the highest traded volume, whereas March realized the highest market-clearing price during the quarter.
“The green energy open access rules hold a lot of promise, and it is up to the states now to walk the talk. The demand for renewables through open access is mounting as corporates with commitments to RE100 goals are driving the uptake of renewables and bringing along their supply chains. Procuring renewables through open access is also helping businesses reduce their operating costs and carbon emissions,” commented Priya Sanjay, Managing Director at Mercom India.
A detailed analysis of the solar open access business overview, retail electricity tariff, and open access charges and costs for seventeen states has been covered in the report, with Assam being the latest addition.
The average PPA prices, net landed costs, and open access policies and regulations released in Q2 2022 are featured in the report.
The report also highlights the views and opinions 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 Q2 2022
- Open access solar installations in 1H 2022 totaled 1.3 GW, an increase of 97% compared to 1H 2021
- India added 680 MW of open access solar capacity in Q2 2022, an 18% QoQ increase and a 223% YoY increase
- As of June 2022, the total installed solar capacity in the open access segment was over 6.5 GW
- About 2.8 GW of projects are under development and pre-construction phase in the pipeline
- The top five states contributed to 91% of open access solar installations in Q2 2022
- The highest solar capacity added during the quarter under open access was in Karnataka
- Karnataka has the largest pipeline of open access solar projects in various stages of development