Restrictions on power banks will curb open access solar power – pv magazine India



A new report analyzes the current state of banking arrangements in Indian states rich in solar and wind power, as well as the implications of these restrictive arrangements for the renewable energy sector.

New restrictions on electricity storage will hamper the growth of the rooftop and open-access solar market, and potentially slow progress towards the national target of energy, according to a new briefing note from the Institute for Energy. India of 450 GW of renewable capacity installed by 2030. Economic and Financial Analysis (IEEFA) and JMK Research.

Banking allows renewable energy producers to deposit excess electricity into the grid and withdraw it later when needed, much like putting money in a savings account at a bank.

“Solar and wind projects are likely to produce excess energy during peak summer or windy seasons,” says co-author Jyoti Gulia, founder of JMK Research. “Without banking facilities or with banking operations limited to monthly rather than annual periods, this excess production is wasted.”

The authors analyze banking arrangements in major states, noting that some states, such as Gujarat and Maharashtra, have moved from an annual bank to a monthly bank. And that banking arrangements are likely to be limited more to the hour of the day or all day in most states.

States like Andhra Pradesh and Tamil Nadu have cut banking facilities altogether.

Without bank provisions for excess energy, the business model of open-access renewable energy projects, which sell electricity directly to commercial and industrial consumers (C&I), will become unsustainable, Gulia said.

“This will be a major setback for developers of renewable energy projects at such an early stage in India’s renewable energy growth trajectory. The share of renewables in the C&I segment is less than 1% of the overall power generation portfolio in most key states rich in renewables.

The banking restrictions follow the introduction of net metering limits and the removal of waivers for open access renewable energy projects.

Co-author Vibhuti Garg, Energy Economist, Head of India at IEEFA, Explains Electricity Distribution Companies (Discoms) Worried About The Impact On Their Income From Well-Paid C&I Consumers shifting from conventional energy supply to alternative supply via roof and open access. solar model.

“While imposing banking restrictions will not help discom finances much, it could have a significant impact on the deployment of renewable energy in India, which must now accelerate considerably to meet the target of 450 GW of here 2030, ”she said.

The authors say restrictions on banking should not be considered until statewide roof and open access goals are met.

As an alternative, they propose that dcoms can choose to source the stored energy themselves. Instead of returning the electricity to the end consumer / developer, discoms can simply pay for the quantum of energy put in reserve after each month at their lowest supply cost. Regulators could allow the accumulated energy to contribute to the renewable energy purchase obligation (RPO) of discoms.

In addition, the authors recommend standardization of regulations in all states. Project developers face confusion and uncertainty as banking arrangements and bank charges vary from state to state.

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