Loading...

Uttar Pradesh shows open access promise


29 March 2018 | BRIDGE TO INDIA

Uttar Pradesh shows open access promise

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.


Recent reports

India Renewable Compass | Q1 2024

India Renewable Compass | Q1 2024

This report provides a detailed update of all key sector developments and trends in the quarter – capacity addition, leading players, tenders and policy announcements, equipment prices, financial deals and other market developments. It also provides market outlook for the next two quarters.

India PV Module Intelligence Brief | Q1 2024

India PV Module Intelligence Brief | Q1 2024

This report encapsulates quarterly trends in module demand and supply, import and domestic production volumes, supplier market share, break-up by technology and rating, global market scenario, pricing across the value chain, key policy developments and market outlook.

India Corporate Renewable Brief | Q1 2024

India Corporate Renewable Brief | Q1 2024

This report provides an update on key trends and developments in the corporate renewable market including capacity addition, key players, policy & regulatory issuance, financing, PPA tariffs and other market trends.

Corporate renewable market -alternative procurement options

Corporate renewable market -alternative procurement options

Corporate consumers seeking to increase share of renewable power in their consumption mix have the option of using multiple short-term procurement routes like green power exchange, renewable energy certificates (RECs), I-RECs and green tariffs.

India Solar Rooftop Map | December 2023

India Solar Rooftop Map | December 2023

India Solar Rooftop Map is an info-graphic report providing a snapshot of rooftop solar market in India – capacity addition across states and consumer segments, market share of leading players and other key trends. Total rooftop solar capacity is estimated to have reached 14,484 MW by end of 2023. Total new installations in 2023 are estimated at 2,856 MW, up only 8% over previous year.

India Solar Map | December 2023

India Solar Map | December 2023

India Solar Map 2023 is an info-graphic report covering growth of utility scale solar sector – national and state-wise commissioned and pipeline capacity, leading market players and portfolio details of top 16 project developers. Capacity addition in 2023 fell 51% YOY to 5,924 MW taking total utility scale solar capacity to 59,840 MW. Total project pipeline stands at a record 74,161 MW.

To top