The Green Energy Open Access (GEOA) Rules, introduced in 2022, have propelled a historic surge in India’s renewable energy sector, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics.
Between FY2023 and FY2024, annual installations in the commercial and industrial (C&I) open access market soared by 90.4 percent, culminating in a cumulative capacity of 18.7 gigawatts (GW). Gujarat and Rajasthan led this growth, adding 1.43GW and 0.98GW, respectively, in FY2024.
The GEOA Rules aim to simplify the generation, purchase, and consumption of green energy by reducing costs and streamlining regulatory processes. “By creating a user- and investor-friendly framework, the GEOA Rules have significantly bolstered India’s renewable energy momentum,” said Vibhuti Garg, Director – South Asia, IEEFA.
To further incentivize investments, the Ministry of Power introduced additional surcharge exemptions for offshore wind and green hydrogen projects, strengthening the sector’s appeal to investors.
Challenges and Opportunities
Despite its success, the GEOA framework faces hurdles at the state level. Deviations from central rules and challenges in translating regulations into actionable development have limited its impact, especially among smaller consumers like Micro, Small, and Medium Enterprises (MSMEs).
“The penetration of green open access among smaller entities with less than 1 MW contract demand remains underwhelming,” noted Prabhakar Sharma, Senior Consultant at JMK Research. He emphasized the need for cohesive central and state-level regulations to ensure sustained growth.
The report highlights the importance of upgrading grid infrastructure, including substation capacity and circuit length, to enhance project connectivity and reduce transmission costs.
Outlook
Emerging technologies, such as Inter-State Transmission System open access and power exchange-based projects, are expected to feature in future amendments to the GEOA Rules. These advancements could play a pivotal role in shaping the market’s trajectory and addressing existing challenges.