The Open Access Power Market in India Undergoes Significant Change with Western States Poised to Take Center Stage

The Open Access Power Market in India Undergoes Significant Change with Western States Poised to Take Center Stage

December 12, 2025

India’s renewable energy open access market is seeing an interesting transition, as the growing demand of western states is now poised to surpass the historical leaders of Karnataka and Tamil Nadu in tapping the potential of open access renewable energy projects, at least as per an analysis done recently by Bridge To India.

Karnataka and Tamil Nadu had been commanding the market in accessing open access solar power in India for more than a decade and contributed around 73 % of the cumulative capacity as of September 2025. But new investment streams and policies in western states are changing all that and offering opportunities for new markets to emerge beyond the conventional hubs in South India.

The open access process enables major industrial customers to purchase electricity directly from power producers, rather than from distribution utilities. This can lead to reduced costs and more renewable energy. However, the industry has experienced substantial expansion since the advent of the Green Open Access Rules in 2022, although there has been a transition in the share of the market due to changes in the western states for easier access to the grid, appropriate tariffs, and timely approvals.

According to industry analysts, this marks a shift in the overall energy transition in the Indian industry, where open access has become the major tool in expanding the scope of renewable energy beyond their conventional boundaries. Open access can help industries cut down their carbon emissions as well as energy costs by providing buyers access to competitive clean energy.

Even in the face of such emerging opportunities, issues are yet to be addressed. This includes state level issues of regulation, infrastructure issues, and financial conditions of distribution companies. As a result of newer states gaining momentum, the leadership landscape of India’s open access market adjusts in order to provide a diversified future for India’s renewable growth.