CareEdge Ratings projects India’s annual open-access solar and wind power generation installations to touch 4 to 5 GW for the next two to three years.
Annual open-access solar and wind capacity additions in India have remained below 3.5 GW thus far, with cumulative installations reaching approximately 13.6 GWp.
The analysts said the C&I market presents significant growth opportunities for the renewable sector, and the implementation of open access norms by the government is expected to bring much-needed transparency, and reliability, and attract additional private investments.
The government has introduced green energy open access rules to accelerate the transition towards renewable energy and make the market attractive for both power producers and consumers in the C&I sector.
Initiatives include reducing the eligible load to 100 kW from 1 MW for consumers to procure power through the open access route, defining the modalities of open access charges that can be applied by state distribution companies (discoms), and stipulating a minimum banking period of 30 days for consumers.
Discoms are also obligated to supply green energy at an additional cost upon consumer request.
While the government aims to harmonize open access rules nationwide, individual states have the jurisdictional powers to determine open access charges for their customers through their electricity commissions.
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