Financial viability of open access in renewable energy sector of India
Student name: Mr Arideep Halder
Guide: Mr Sapan Thapar
Year of completion: 2016
Host Organisation: Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH, New Delhi
Supervisor (Host Organisation): Mr Sunil Kumar Sharma
Abstract: The Indian Government in 2015 has set an ambitious target to deploy 175 GW of RE by 2022. In
India, the government has been historically instrumental in RE development by introducing
policy and regulatory interventions. However, a lot more is to be done apart from policy
measures promoting RE capacity addition only. In order to actually deploy 175-GW RE, intrastate,
in addition to inter-state, RE transmission will be necessary. Large-scale RE deployment
planned is expected to come from RE resource-rich areas usually located far away from major
load centers. This power generated is required to be transmitted to the load center’s located either
within the same state or in another state. The host state may not be able to consume all the power
generated and hence, it may need to be transmitted for long distances to load center’s in other
states. This will essentially require open access through transmission and distribution systems for
transmission and wheeling of the electricity generated.
The primary objective of the study is to get an understanding of whether sale of RE power
through different market models involving OA is financially viable in the present Indian context.
The study tries to answer different questions as shown below.
What are the
incentives (if any)
for OA of RE?
What is landed cost
of electricty when
RE power is
procured through
OA by consumer?
How is the landed
cost comparable to
that when supplied
by the distribution
utily?
Is sale of power to
the power exchange
financialy attractive
for RE generators?
