Tamil Nadu’s solar open access installations jumped 381% to 96 MW in the third quarter (July-September) of the calendar year 2021, from 20 MW in the second quarter, according to a report from research firm Mercom India Research.
Under open access, industrial users and commercial buildings are allowed to buy cheaper power directly from private generators, without depending on the state utility. The aim is to increase competitiveness and efficiency in the power sector, and the loss of revenue to Tangedco on account of open access is compensated with the levy of a cross-subsidy surcharge and an additional surcharge.
The solar open access installations in India stood at 307 MW in the third quarter of 2021, up from 166 MW in the comparable period the previous year. Uttar Pradesh was the top State, accounting for 35% of the installations, followed by Tamil Nadu with 31%, Maharashtra, 11%, Gujarat, 10%, and Karnataka, 7%, Mercom said. These States accounted for 96% of the total installations.
Tamil Nadu showed significant growth, thanks to the State’s favourable regulatory framework and tariff structure. The State houses many large industries with a huge power demand, Mercom said.
According to Tamil Nadu Electricity Regulatory Commission, the State levies an additional surcharge of ₹0.70 a unit and a cross-subsidy surcharge of ₹1.67 a unit on open access consumers, and the rates are lesser than those charged by Karnataka, Maharashtra and Rajasthan.
Tamil Nadu surpassed Rajasthan, Madhya Pradesh, and Andra Pradesh to become the second largest State with cumulative open access solar installations. Tamil Nadu has 541 MW of open access solar projects, 9% of the total installed capacity, 4800 MW, as in September last.
However, Mercom said Tamil Nadu had a conducive policy, but getting approval was extremely tough. Despite the single-window clearance, there was a lack of proper procedure for approval. It said Tamil Nadu must develop a new tariff order and clarify the charges. Many stakeholders were uncertain about the investment and did not know what to expect in the coming tariff order.
