Open Access

Power-plus

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Open access allows large users of power — typically having connected load of 1 megawatt (Mw) and above — to buy cheaper power from the open market. The idea is that the customers should be able to choose among a large number of competing power companies–instead of being forced to buy electricity from their existing electric utility monopoly. It helps large consumers particularly the sick textile, cement and steel industrial units by ensuring regular supply of electricity at competitive rates and boost business of power bourses.

Open Access on Transmission and Distribution on payment of charges to the Utility will enable number of players utilizing these capacities and transmit power from generation to the load centre. This will mean utilization of existing infrastructure and easing of power shortage. Trading, now a licensed activity and regulated will also help in innovative pricing which will lead to competition resulting in lowering of tariffs.

THE ELECTRICITY Act 2003 is a landmark legislation in that it opens the power sector to a number of players by laying down provisions for a power market and competition. As per Electricity Act 2003 Open Access is

“Non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations specified by the Appropriate Commission”.

Categorization

On the basis of location of buying and selling entity, the open access is categorized as:

  1. Inter State Open Access:When buying and selling entity belongs to different states. In this case CERC regulations are followed. It is further categorized as:
    1. Short Term Open Access (STOA): open access allowed for the period of less than one month.
    2. Medium Term Open Access (MTOA): open access allowed for a period of 3 months to 3 years.
    3. Long Term Open Access (LTOA): open access allowed for a period of 12 years to 25 years.

** If suppose you require open access for two months, then you should re – apply for STOA before the expiry of first month.

  1. Intra State Open Access: When buying and selling entity belongs to same state. In this case SERC regulations are followed. It is further categorized as STOA, MTOA, and LTOA and the duration of which depends on the respective state open access regulations.

Types of Transactions:

In general the buyer and seller of electricity can go for bilateral or collective transactions. In bilateral transactions a PPA is signed between the buyer and seller, which is generally facilitated by a trader for a little margin. In case of collective transactions the electricity is traded through exchanges, by exchange members for a very small margin fixed by commission. Currently India has two exchanges PXIL and IEX.

Open Access Charges:

There are several charges to be paid by open access consumers to distribution licensee, transmission licensees and other related entities, other than the power purchase cost paid to the generator or supplying entity. These charges include:

i.        Connectivity Charges

ii.        PoC Charges

iii.        Transmission Charges

iv.         Transmission Losses

 v.          Wheeling Charges

 vi.          Wheeling Losses

 vii.          Cross Subsidy Surcharge

 viii.          SLDC Charges

     ix.        RLDC Charges

** In addition to these charges the open access consumers has also to fulfil the renewable purchase obligation (RPO), in which they have to purchase a part of their total consumption through electricity generated from renewable energy.

The details about various charges and different technical aspects of open access will be discussed in detail in the upcoming articles.

Author:

Sumit Kumar

For any query please write to sumit@indianpowersector.com

47 Responses to Open Access

  1. praveenkumar says:

    Hi sir,

    What is the difference between LTOA & LTA?

  2. Sampat says:

    Dear Sir,
    We are planning to set up 5MW solar plant in Maharashtra and interested to sell generated power to third party.I need your assistance for this.

  3. Neha says:

    Sir,

    In case of Medium Term Inter state transmission, injecting power from State in WRLDC and drawl to a state in NRLDC, do we need to pay RLDC Charges to both the SLDCs or only single RLDC charge is payable?
    Seeking your comments and clarifications on the same.

  4. Vijay says:

    Dear All,

    Can any one of you suggest me a comprehensive book on Indian power sector(Including Renewable Energy) which covers structure, policy and regulation of Indian power sector.
    Can any any one tell me how power sale takes place through exchanges?

    Regards,
    Vijay
    shankar2008@gmail.com

  5. nikhil kapoor says:

    where can we get the application for all with all the pre-requsite documents required for a company to go for open access.

  6. ELectricity Regulatory commission in Andhra pradesh has imposed R&C measures during 2012-2013. If a consumer availing a part of his requirement from IEX through O.A &balance from Discom exceeds the permitted quotas of Discom supply,will the penal charges as per ERC orders apply or UI charges asper Open-access Act apply.Pl.clarify.

  7. bhushan says:

    JKPDC is a generating company owned by J&K Government. It has various power projects under construction at different locations.At each location the construction power requirement is more than 1Mw. is it possible to meet these requirements by purchasing power produced by it and getting open access to transmit this power upto the load centers

  8. sandeep says:

    We are looking for a Bilateral PPA agreemnt with the Power generating unit’s. We are having net energy cosumption of 45000 KWh/day and project are located in hyderabad.

    • Hello Sandeep,

      The power consumption which you have mentioned is very high. I understand the power situation in hyderabad and power cut and huge power procurement cost for industries and commercial units. In this regard you have 2 options to satisfy your power demand, first option is having your own captive generation in the near by village for 45-50 MW and just paying the Transmission charges and next is open access PPA with Power utilities. The best opted Power utilities you can select in this case is the Gen Utilities of Maharastra and Chattisgarh, the effective landing cost would be around 420-450 paise (approximate) per KWhr in this regard. We can provide further assistance in this regard.

    • sandeep says:

      We are small generation unit based out in Hyderabad and willing to supply electricity if any interest. please send you interest to solar@vyomaa.com

      • Manveer says:

        Hi…
        i am a business developer and Power trader licencee in power trading. so for any purchase or sell of power you can contact on the mentioned no. 91-8557904712directly.

        Regards
        Manveer

    • Madhav Chowdhary says:

      Hello,

      We can offer to you 45,000 kWhr per day, Power from Solar Power Projects, at fixed price for fixed price for first 15 years. And for next 15 years, you will get power almost free of cost.

      If you are interested please feel free to contact.

      If you have any query and / or if you need any additional information and / or any clarification. please feel free to ask for the same, without any hesitation. We will be happy to provide all the possible information you want from our side.

      Please let me know your comments.

      Looking forward

      Thanking You
      With Regards

      for SWEE Technologies

      Madhav Chowdhary
      (Owner / Founder)

      Bangalore (India)

      Mobile: +91-9623557207 / +91-7667669071

      Email: sweetechnologies@gmail.com

    • Hi Sandeep,

      We REConnect Energy India’s largest Renewable Energy Services company managing about 2.5 GW of Renewable Energy Portfolio under REC, RPO, Wind/Solar Forecasting and Scheduling, Power Transaction Services-would like to become a trusted partner in managing your electricity requirements better.

      We REConnect Energy Solution Pvt Ltd with our established network of generators, investors, suppliers etc. are in better position to create opportunities which can help you to hedge you power bills. We can introduce you to many generators to get electricity at most competitive rates.

      Regards,
      Nikhil Dhamankar
      nikhil.dhamankar@reconnectenergy.com
      Ph: 9538102626

    • Sudharshan says:

      Please send me a clear specification of your requirement and I would be happy to oblige. Thanks

    • Saurabh says:

      Sir we are planning to sell the power,If are interested please drop a mail in yysaurabh4@gmail.com , I will give you a better option.

    • Tushar S says:

      WE HAVE OUR OWN 60 MW GENERATING UNIT AND CAN SUPPLY YOU REQUIRED QUANTUM OF POWER AT MOST REASONABLE RATE.
      SO CAN FEEL COMFORTABLE FOR FURTHER TALKS.
      CONTACT NO. 9850257509

    • vrujlal jagani says:

      Dear Sir,

      Please contact us for detail. we will provide you quantity of power at very attractive rate.

      Best regards
      Jagani

  9. sandeep says:

    Can i implement the hydro project in himachal pradesh and same power can BE transfer to gujarat and andhra for captive use after paying charges to SLDC’S

    Is it possible.

  10. Dilip Rane says:

    Presently we are taking power from MSEDCL and also from WIND power generated by our sister concern.
    Can we take power from additional supplier under open access?

    • Vineet says:

      Yes..You can take from other parties also but only wind power.

    • Manveer says:

      ya you can take power through open access . you can share the information with me in my EmailID:

    • Vijay says:

      Dear Dilip,

      Let me know your approximate monthly consumption (In kWh) detail and a about your category i.e commercial or industrial.

      We are one of the well-known Renewable (Wind and Solar) IPP (Independent Power Producer) and have many wind projects in Maharashtra (Commissioned as well as at development stage)
      We are looking to sale power to industrial units with express feeder and commercial set-up (Hotel/BPO/IT Parks) who are 24*7 power consumers.
      You may contact me at shankar2008@gmail.com

      Regards,
      Vijay

  11. Ashok Reddy says:

    I have gone through CERC regulations document on Open access. They have described Long term and Medium term open access but not about Short term open access. Can you please explain in brief about Short term open access ?

  12. Ankur Kumar says:

    Where can i get the information on the total number of independent feeder a state has?

  13. Geddada Vijaykumar says:

    Sir.
    What is the present rate per unit as on today in third party PPA.

  14. prasanth says:

    Hi,

    I am planning to set up 5 MW solar power plant in chitradurga ,Karnataka and want to sell the power through open access to one of the hotel in Bangalore. I want to register the project under REC and claim REC benefits. I was told in KREDL and KERC that REC along with open access power selling is not allowed in Karnataka. Can you please throw some light on it? if all other states in India are allowing this policy why not in Karnataka?

    • Hi Prashant,

      Being a solar plant your project is eligible for zero wheeling and nominal 2% banking charges.
      There is no scope for concessional wheeling but the order itself has fixed the wheeling to zero and hence your project is eligible for RECs.
      However, the DISCOMs have not met their RPOs and your applicable may face glitches due to the unwillingness of regulatory bodies. As solar projects are not opting PPA with board their RPO is not met easily.
      You may contact me at vamsi@kosherclimate.com in case of any assistance is required in the REC process.

  15. Kumar Deo says:

    What is difference between third party PPA and Open access? Or both are same?
    Please suggest…
    Thank you.

    • SUMIT KUMAR says:

      A third party PPA works in such a way that a project developer builds own and operates a plant and signs an agreement (PPA) for selling electricity to any consumers through open access route.
      So, in many respect both are same.

  16. Balaji P says:

    Can you please suggest me a resource from which i can get the difference between all these 9 charges that you have mentioned?

  17. Shiv says:

    Hi. I am a journalist. I am doing a story on power sector. I need some quotes. How can I connect with you on phone.

    Thanks

  18. Bhumik Shah says:

    I want to know the information related to various charges applicable to open access in detail
    i.e wat do it mean by wheeling charges?

    like wise

  19. John says:

    Hi,
    Do you have any example or illustration that fully explains the different charges applied to PPA and losses applied to total kWh output?
    Thanks,

    John

    • IndianPowerSector.com says:

      Dear John,

      I did not get your question completely, can you explain that what actually you are looking for.
      What I get from you is you want to know about the charges when you enter into a third party PPA (i.e open market PPA), the few of the charges are , the exact amount varies from state to state and type of power (green or conventional) and also on the voltage level of injection and withdrawal..

      1. Electricity Duty
      2. Transmission charges and transmission losses
      3. Distribution losses
      4. Wheeling charges
      5. Banking charges
      6. Cross subsidy surcharge

      For further clarification please write to us on info@indianpowersector.com.

      • Tushar S says:

        I DONT THINK THAT IN THIS CASE “1. Electricity Duty” WILL BE APPLICABLE..!!
        REST OF INCLUDES ‘POC’ AS PER STATE ZONE.

  20. Hi,

    can you share an email adress on which we can share our press releases.

    we have a press release related to carbon credits and footprints.

    Look forward to your response.

    Best,
    Siddharth

  21. Asha says:

    Could you please send the open access charges applicable in different states of india

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