Corporate Renewable PPAs in India: Market & Policy Update December 2019
For our client WBCSD, as part of their Indian Corporate Renewable PPA Forum, JMK Research has prepared a Market & Policy update for December 2019. The update tracks policy changes, analyzes new business models and explores future trends that are likely to define the growth of corporate renewable PPAs in India.
In this report, six market trends are elaborated. These are:
- The emergence of two northern states – Haryana and Uttar Pradesh – as important markets, with more than 1 GW of group captive solar projects approved.
- The transition of the Indian corporate renewable PPA market from predominantly third-party PPA models to group captive PPA models,led by the withdrawal of open access waivers for new third-party PPAs in most states.
- Leadership of information technology (IT), automotive, electrical manufacturing, construction/infrastructure and metal companies in adopting corporate renewable PPAs.
- Increased participation of specialized national developers in acquiring key corporate contracts as regional players cede ground.
- Growth in the rooftop solar market for PPA projects in India continuing to dominate growth in projects based on captive installations.
- Developers and corporate customers aligning project schedules to avoid paying a safeguard duty on solar panels.
While a couple of these trends are secular and based on long-term renewable power procurement fundamentals, most are business reactions to policy changes. This report then goes on to explain the policy direction based on recent changes at the state and central government level.
The report concludes with an outlook for 2020. India has a development pipeline of almost 2 GW for corporate renewable PPAs. A small part of this will come online in the current financial year (April 2019 – March 2020) – leading to lower capacity addition this year as compared to last year. However, we do expect this pipeline to expand and a significant proportion of this to be installed in the next financial year (April 2020 to March 2021), resulting in a bounce back.
Click here to download the full report.