Commercial & Industrial (C&I) consumers in India are increasingly looking to procure renewable energy for financial and environmental reasons. This WWF-BRIDGE TO INDIA report reviews progress made in renewable power procurement by C&I consumers and examines currently available procurement options. Many of these options are not freely available because of various policy and market constraints. The report also examines suitability of alternative options such as virtual power purchase agreements (VPPAs), green tariffs, internationally tradable RECs (I-RECs), dedicated renewable power exchanges and peer-to-peer (P2P) trading.
Figure: Renewable power procurement options for C&I consumers in India
Sources: BRIDGE TO INDIA research, Indian Energy Exchange, Power Exchange of India
i) Rooftop solar installation data is as of 31 March 2019.
ii) Open access market size data is as on 30 September 2019.
iii) RECs equivalent to 2,322 MW renewable power capacity are estimated to have been sold to C&I consumers in FY 2019.
Our preliminary findings indicate that green tariffs, renewable power exchange and I-RECs are relatively easier to implement compared to the other options. However, deeper consultation is required between policy makers, regulatory authorities, DISCOMs, generators and consumers to further examine these options. A collaborative effort to undertake pilot programmes and consumer awareness initiatives is needed to build market confidence and accelerate the drive to increase renewable power consumption by C&I consumers.wer consumption by C&I consumers.
Figure: Comparison of alternative C&I procurement options