OPINION | India’s clean energy future hinges on expanding open access

energy

India has set itself the ambitious target of reaching 500 GW of non-fossil electricity capacity by 2030. To put this in perspective, it is more than the total power generation capacity of Japan and Germany combined. This goal is more than just a number; it is a declaration of intent that places India at the forefront of the global clean energy movement. However, it will require more than just constructing wind farms and solar parks. The true test will be whether clean power can be efficiently and economically provided to the communities and businesses that require it. Open access is the mechanism that can make this possible, giving companies a straightforward way to purchase renewable energy directly and at scale. The 500 GW target can become attainable if India makes open access a key component of its energy strategy.

Why Open Access is Key to Meeting Demand

The case for open access is clear. Commercial and industrial consumers account for nearly half of India’s electricity demand and pay some of the highest tariffs because of cross-subsidy structures. These businesses are also under growing pressure to cut their carbon footprint, both to stay competitive globally and to meet their own net zero commitments. For them, renewable energy is not optional; it has become central to long-term planning. With open access, companies can source renewable power directly from developers instead of taking on the expense and effort of building plants themselves. Group captive models, where several businesses share investment in a project, make this pathway even easier to adopt and scale. Open access also offers flexibility in terms of sizing the project as per a company’s own power requirements. Another major advantage is that industries have clear visibility of the cost structure in open access, which gives them greater confidence in future delivery tariffs. In many ways, open access can be the demand-driven engine that complements utility-scale projects and accelerates private investment.

Progress So Far and Emerging Momentum

Encouragingly, there has already been real progress. The Green Energy Open Access Rules of 2022 lowered the threshold from 1 MW to 100 kW, giving smaller businesses a chance to participate. They also set clearer timelines for approvals and introduced a digital registry to improve transparency. The results have been visible. Open access capacity has climbed sharply, with some estimates suggesting it nearly doubled between 2023 and 2024. This demonstrates that momentum grows swiftly when policy intent is clear.

The challenge now is to carry this progress forward. Businesses need predictable and transparent charges so they can confidently enter long-term contracts. A more uniform approach across states would cut complexity and create a level playing field for companies operating nationwide. Stronger transmission and distribution networks, together with consistent rules for banking surplus renewable power, will give the system resilience and flexibility. These improvements will also reassure both consumers and investors, creating a cycle in which growing demand attracts more investment and accelerates the spread of renewable energy.

Overcoming Challenges

Looking ahead, three areas matter most:
• Keep open access charges predictable so renewable energy continues to be the more affordable option.
• Align rules and approval timelines across states, using digital platforms to make the process quicker and easier.
• Strengthen grids and expand storage so clean power reaches consumers consistently and at scale.

These are not just technical adjustments. They are an opportunity to shape an energy system that supports businesses, gives distribution companies cleaner supply options, and inspires confidence among investors. With thoughtful tariff design and transitional support, DISCOMs too can benefit from the growth of open access, building stronger and more sustainable portfolios over the long term.

Aligning Policy with Purpose

The benefits of making open access a central priority are significant. As corporate demand for renewable energy rises, it will draw in more investment and push costs lower. Net zero goals will move from paper promises to practical action. Developers will see steadier pipelines of viable projects, and India’s standing as a clean energy leader will grow stronger. Above all, the 500 GW target will feel less like a distant ambition and more like a milestone that is firmly within reach.

India’s energy transition is one of the most closely watched in the world. The country already has the scale, the ambition, and the momentum. What it needs now is sharper focus on the policies that bridge supply with demand. Open access is that bridge. Making it a policy priority will not just help India meet its targets but will also set a benchmark for how large economies can build a future powered by clean energy.

(Sanjay Gupta is CEO, Apollo Green Energy Limited.)

Views are personal, and do not represent the stand of this publication.