Collaborative Solar PV Procurement

Advancing a clean energy future with cost-competitive green power

The Green Power Market Development Group (GPMDG) invites participation from corporate energy buyers, financiers, and policy makers to transform energy markets. Photo by WRI/Flickr

The Green Power Market Development Group (GPMDG) invites participation from corporate energy buyers, financiers, and policy makers to transform energy markets. Photo by WRI/Flickr

The Collaborative Solar PV project is an initiative of GPMDG in collaboration with Optony. The project, by aggregating the demand for on-site solar photovoltaic (PV) systems across neighboring businesses, aims to:

• Increase the scale and accelerate the rate of deployment of solar technologies
• Reduce transaction costs of rooftop solar projects
• Encourage corporations to make investments in renewable energy generation
• Support technology advancements
• Reduce greenhouse gas emissions

The first round of CollabSolar project was organized in Bangalore with 5 buyers. WRI helped the buyers with tender management and vetting of the proposals received. The project reached the stage of negotiations when due to a force majeure cause i.e. a proposed anti-dumping duty on imported solar equipment slowed down further progress. 

In this interval, one of the large buyers changed their business model and decided to pull out of the negotiations as a strategic decision in India. They have decided to go ahead with solar procurement on their own in two other sites in India. Since the potential of the other buyers is too small the financials of the project did not interest either the buyers or the sellers. 

We are incorporating the following lessons learned in this exercise into the next round of collaborative procurement:

• Segregate commercial and industrial buyers into two different bundles
• Aggregate such bundles at industrial park level (one each in Bangalore and Chennai) to allow for fluctuations of demand and supply

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