Uttar Pradesh shows open access promise

29 March 2018 |

Uttar Pradesh (UP) has recently amended the Captive and Renewable Energy Regulations 2014 to provide 50% exemptions from transmission and wheeling charges for intra-state open access sale of solar power. The state agencies have been reluctant to provide OA approvals in the past. There is virtually no OA solar capacity in the state. But this amendment, in line with the state solar policy, indicates the state government’s intent to finally open doors to the open access (OA) market. 

Figure: Electricity consumption by consumer category in UP in 2015-16

Source: All India Electricity Statistics, General Review 2017, CEA

This figure shows that the industrial sector accounts for 34% of total power consumed in the state although almost 38% of their requirement is met from captive sources. The state has a relatively low cross-subsidy surcharge (CSS) of INR 0.60/ kWh for industrial consumers which makes OA solar about 25% cheaper than grid power. Commercial consumers are also eligible for OA power but CSS for them is prohibitively high at INR 4.52/ kWh.

Project developers could avoid CSS by opting for the group captive route but regulators are increasingly challenging this approach.

A comparison of OA solar cost under multiple scenarios (before exemptions, after exemptions and for captive sources) with other sources of power shows that OA can be a very attractive route for industrial and commercial consumers. 

Figure: Cost of power from different sources in UP

Source: BRIDGE TO INDIA analysis
Note: We have assumed base cost of solar power and conventional power at INR 4.50/ kWh and INR 3.50/ kWh respectively to calculate total landed cost of OA power.

OA market in other states such as Karnataka and Madhya Pradesh has attracted large IPPs such as ReNew, Avaada, Shapoorji Pallonji, Aditya Birla, Hero and AMP. As these states shut down following withdrawal of incentives, UP could be the next hope for OA market.

Back
"; ?>

Recent reports

India Solar Rooftop Market Analytics   

This report presents trends and observations from over 16,000 rooftop solar installations with an aggregate capacity of 2,265 MW in our database. It p...

Buy Report Download Executive Summary

Forecasting and Scheduling Regulations   

India’s central electricity regulator, the Central Electricity Regulatory Commission (CERC), issued an amendment to the Deviation Settlement Mechani...

Buy Report Download Executive Summary

India RE Map | September 2019

India added 9,327 MW of utility scale wind and solar capacity in the last 12 months. Total installed RE capacity is estimated at 66,650 MW as on 30 Se...

Download

India Solar Compass Q2 2019   

Q2 was again a slow quarter for the solar sector with new capacity addition coming in at only 1,104 MW, down 55% over previous quarter and 28% below o...

Buy Report Download Executive Summary

India Solar Map | June 2019

Indian utility scale solar capacity reached 26,154 MW as on 31 March 2019. Capacity addition fell to 4,810 MW in FY 2019, down a steep 47% over previo...

Download

India Solar Rooftop Map | June 2019

India is estimated to have added a record 1,836 MW of rooftop solar capacity in FY 2019. Rooftop solar continues to grow rapidly registering a growth ...

Download
Award winnig research
We use cookies to offer you an optimal user experience and collect information on website usage.