A leading IPP wanted to pursue opportunities in the solar open access market in India. The client initially invested in rooftop business and started with small scale projects. As the economics of solar underwent change and regulations opened up the market there was a need to focus growth on higher profitable opportunities.
MEC+ was engaged to develop the solar open access strategy towards 2023.
There are three main drivers for the C&I solar market:
- Policy governing extent of open access and renewables in the state
- Regulations for interconnection, permitting, tariff compensation & charges, incentives for banking, and net metering.
- The ability of a customer to pay which varies by state, open-access type, and customer segment type
MEC+ team took a two-dimensional approach to help the utility position itself as a leader in the solar open access market:
- Prioritizing the market segment by Business case: We developed an extensive model to compare the current and future business cases of open access solar across 10 states for various customer segments and market segments. More than 10 parameters were modeled for each state and customer segment, and a forecast was done towards 2024 to assess future attractiveness.
- Customer PPA and vendor preferences: We ran an extensive consultation process with the leading customers and developers in India to:
o Identify political and execution challenges across states
o Establish decision-making criteria of key customer segments for the open-access power supplier
With our support, the IPP was able to reshape its business strategy by focusing its investment and resources on specific geographies, customers, and business models. As a result, the IPP prioritized three states out of 10 relevant states, one market segment out of Captive vs Group Captive vs 3rd party PPA and one customer segment.