Hyderabad: Discoms creating problems for solar power developers

Hyderabad: At a time when the demand for solar open access is growing in many states of the country, inordinate delays in complying with the regulatory framework by distribution companies (Discoms) are creating bottlenecks for small capacity developers in the state. Open access is an arrangement through which consumers with 1 MW or more of connected load (sum of all loads) can buy energy directly from generators or the open market instead of distribution companies. According to sources, the tedious and time-consuming long-term open access (LTOA) renewal process and other issues related to approvals were creating problems for open access developers in the state.

Developers complain that Discom officials are creating a lot of problems in granting permissions, due to which their projects are getting delayed. As per rules, solar open-access applications should be disposed of in 30 days, but it is learnt that it is taking up to 4-5 months. Solar open access developers claim that Discoms often hamper renewable energy generation by forcing developers to reduce production and delaying the grant of open access approvals despite it being a statutory requirement.

Developers allege that since discoms are loss-making, they will lose business due to solar open access projects, so they are deliberately creating hurdles to make them back out of the project. They said discoms are reluctant to encourage direct power purchases by corporates as they do not want to lose their most profitable consumers. “The inefficiency of discoms is threatening the viability of many renewable energy projects in the state,” said a developer. Most solar open-access projects in the state are less than 10 MW, with an average capacity of 3-4 MW. The state has a cumulative open-access solar capacity of 328.5 MW, with state-owned Singareni Collieries owning over 200 MW of projects and private players operating the rest.