India sees record renewable installations under GEOA

Gujarat and Rajasthan are leading the growth.

The Green Energy Open Access Rules (GEOA), 2022 helped in clarifying regulations, which in return led to a 90.4% increase in annual installed renewable energy capacity in India’s commercial and industrial (C&I) open access market between fiscal year (FY) 2023 and (FY) 2024.

According to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics, cumulative capacity reached 18.7 gigawatts (GW) by the end of FY 2024. The states of Gujarat and Rajasthan have been leading the expansion, adding 1.43GW and 0.98GW in FY 2024, respectively.

“By streamlining processes and reducing costs, the GEOA Rules have created a user-friendly and investor-friendly framework, driving momentum in India’s renewable energy sector,” said the report’s contributing author, Vibhuti Garg, Director – South Asia, IEEFA.

Aside from the increase in installed capacity, the market also attracted new entrants.

“Consolidating regulations at both the central and state levels has created a more cohesive regulatory framework, fostering transparency and ease of operations,” said the report’s co-author, Prabhakar Sharma, Senior Consultant, JMK Research.

However, challenges remain, such as deviations from the central GEOA Rules in some states that could hinder the prospects of the open access market, Sharma said. The success of the policy also hinges on increased green open access penetration amongst smaller consumers, he noted.

Furthermore, efficiently integrating power from intra-state and inter-state green open-access projects will require substantial upgrades to grid infrastructure, the report said.