OPENING THE DOORS : Open Access
IndianPowerSector.com
May 23rd, 2014
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In an attempt to help the consumer to understand the Open Access (right to choose own source of Power), IndianPowerSector.com has come with a comprehensive report on Open Access with is second in series. The report explains various factors affecting price in Open market, the below is the exclusive article from the report on various states in brief.

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Even after 11 years of the effect of The Electricity Act 2003, Open Access is still a distant dream for many stakeholders of the sector. Reasons may be transmission bottlenecks or political will, the end result is the same. Though bulk consumers trade around 40% of the power traded through leading power exchanges to procure power by-passing the local utilities, serious issues in Open Access still remain.

Indian GDP is stalled by 0.4% because of power cuts to the industries as per FICCI and the loss of markets because of higher prices, which is the key resultant of higher power procurement cost, is still not found in books of India Inc. A 100% Open Access implementation throughout India by empowering the infrastructure, consumer and local utility is very much important in the scenario to minimize this loss.

This year after elections, there will be a positive scenario in the Indian markets providing lots of opportunities for the industries to grow globally by imparting the competitiveness in prices by minimizing the cost of power procurement. Open Access is a one stop solution for this objective.

INTRA-STATE OPEN ACCESS

Rajasthan is one of the most favorable state for intra state Open access. Being a hub for electricity intensive industries like Textiles, Granite and Chemicals, the need for reliable and economic power is very prominent. Rajasthan is among the leading investment destinations in India. Hundreds of Industries are expected to come up in IT and Manufacturing fields in Mahindra World City, Jaipur and the areas facing National Capital Region.

In this state, the difference in cost between the traditional power procurement and open access is considerable at 11KV and significant at 33, 66KV. A bulk consumer of 11KV can save up to Rs.2.52 Lakhs per month on the other hand bulk consumers at 33KV and 66 and 132KV can save Rs.26.28 Lakhs and Rs.34.92 Lakhs per month respectively.

Apart from economic power procurement, the reliability factor is very much important because scheduled and unscheduled power cuts in areas of Udaipur, Jaipur and Kota are prominent and the cost comparison between DG sets as well as opportunity cost for the businesses in highly regarded with Open Access.

Andhra Pradesh is the state with the most cost beneficial scope of intra state open access for industrial consumers. In this report, the comparison for industrial colonies and industrial tariff has been done with open access landed cost. For each Discom of the state, the comparison gives positive results for an industry drawing at 11kV. The highest difference for the cost of power through Discom and Open access is given by NPDCL that is of about Rs1.98 per unit. On a monthly basis, this saving amounts to Rs.71.28 lakhs. Also, if one opts for open access for industrial colonies, per unit cost benefit comes out to be Rs.1.10 for consumers procuring power from CPDCL at 11kV voltage. This amount grosses up to Rs.39.6 Lakhs on monthly basis. The net saving for this category of consumers (5MW) procuring power from open access over other Discoms of the states is much higher.

Hyderabad and Vishakhapatnam – the most favorable cities for upcoming ITIR projects proposed by the Government of India, can attract even more of such projects by providing a better inter-regional transmission infrastructure as it is a major bottleneck now. The count of 623 consumers in the state is a clear indication of feasibility of OA in the state.

Previous report of IndianPowerSector.com on Open Access

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One Response to OPENING THE DOORS : Open Access

  1. bv chandrashekar says:

    sir
    Can you furnish the cross subsidy surcharge applicable under open access for railway traction at 110kv/132 kv in different states

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