India to add 45 GW of corporate renewables over five years

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A new report by Bridge To India says renewables installation for corporate offtake will grow at 22% annually over the next five years to add a total of 45 GW by 2027.

Open access (OA) and rooftop solar will continue to be the dominant sources of renewable power for corporate consumers.

“Renewable energy certificates (RECs) have had a complex trading history because of frequent and unclear regulatory provisions. Further, corporates are not keen to incur extra costs for renewable power obligation (RPO) compliance. Green power trading on the exchange commenced in August 2020 but the volumes are very small due to limited availability of untied capacity,” said the analysts.

The report estimates India has installed 16,099 MW of overall renewables capacity for offtake through open access and 8,269 MW of C&I rooftop solar as of September 2022.

Open access is a mechanism under which consumers can buy electricity directly from power producers, rather than electricity distribution companies (discoms).

“Utility-scale private-sector developers are bullish on the open-access market primarily to diversify offtake risk away from state Discoms. Most of them have exited the rooftop solar business due to small scale and intensive management effort,” said the analysts.

The analysts expect the new RE capacity addition for corporate offtake to remain geographically concentrated.
“Maharashtra, Tamil Nadu, and Karnataka remain the most attractive markets. Under-penetrated markets in Uttar Pradesh, Gujarat, Odisha, and Chhattisgarh are also expected to see more growth. Other states like Haryana, Andhra Pradesh, Telangana, and Punjab with a history of regressive policy actions are expected to see limited growth but could open up with favorable policies,” according to the analysts.

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