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Apr 28
Open Access Solar Power Plant – Complete Guide
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With a combined experience of over 250 years and the successful management of 30 MW of solar energy projects, GSER offers the most efficient solutions.
Open Access Solar Power Plant - Complete Guide
As sustainability becomes a top priority for businesses, many are moving towards cleaner and more affordable energy alternatives. At GSE Renewable Energy we help commercial and industrial (C&I) consumers tap into one of the most impactful innovations in the Indian energy sector—open access electricity.
Open access allows large power consumers to purchase electricity directly from independent solar power producers, bypassing the high tariffs & unreliable supply often associated with local DISCOMs. With GSE you can access renewable energy through the grid—without the need for rooftop space or heavy capital investments.
Introduced under the Electricity Act of 2003, open access gives eligible consumers (based on state-specific load requirements) the freedom to choose their energy provider. GSE supports this transition by offering end-to-end open access solar solutions ensuring cost savings, regulatory compliance & a seamless shift to sustainable energy.
Partner with GSE to lower your electricity costs, reduce carbon emissions, and achieve your sustainability goals through reliable open access solar power.
India’s rapid economic growth has led to a rising demand for clean and affordable energy solutions. With declining solar technology costs and supportive government policies, open access solar has emerged as a viable option for businesses looking to reduce energy costs and adopt sustainable practices. The open access solar policy allows consumers to purchase open access electricity directly from solar power generators, bypassing traditional local utilities.
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Open Access Electricity: The Future of Sustainable Energy
Open access is a major enabler of renewable energy adoption in India, especially for large-scale consumers. By partnering with Independent Power Producers (IPPs), such as those managing open access solar power plants businesses can meet 100% of their energy needs through solar—without any upfront investment in solar infrastructure. Open access is a progressive policy in India’s power sector that allows large electricity consumers—typically with a connected load of 1 MW or more—to buy power directly from independent producers instead of being locked into local DISCOMs. It was introduced under the Electricity Act of 2003 to promote competition, transparency, and consumer choice in the electricity market.
Types of Open Access
- Inter-State Open Access:
Power is transmitted between different states. Governed by the Central Electricity Regulatory Commission (CERC), this model enables consumers to source energy from any part of India making it easier to use renewable energy generated across the country. - Intra-State Open Access:
Both the generator and consumer are within the same state. This model follows regulations set by the respective State Electricity Regulatory Commission (SERC) allowing businesses to benefit from local energy sources with competitive rates and enhanced reliability.
Read More: Open Access in Power Sector
How Does Open Access Solar Work?
Solar open access installations enable businesses to source renewable energy directly from open access solar plants through three distinct models:
- Captive Open Access:
The corporate buyer invests 100% upfront to own the open access solar power plant. The generated solar power is used entirely for their consumption. Grid charges apply, but cross-subsidy and additional surcharges are waived. This model offers cost stability and tax benefits. - Group Captive Open Access:
Multiple buyers collectively invest in an open access solar project, holding at least 26% equity each, while the remaining 74% is funded by investors. Power is shared among the buyers, with grid charges applicable but surcharges waived. It reduces investment risk and lowers costs. - Third-Party Open Access:
Businesses can purchase green power via long-term open access power purchase agreements (PPAs) with no upfront investment. This model provides access to affordable clean energy with lower tariffs, though cross-subsidy and additional surcharges apply.
Open Access Charges
Open access charges are fees imposed by State Electricity Regulatory Commissions (SERCs) to cover the operational costs associated with utilizing the existing grid infrastructure. These charges can vary by state and include the following components:
- Cross Subsidy Surcharge (CSS):
The CSS is intended to compensate DISCOMs for the revenue loss caused by large consumers who switch to open access electricity. The surcharge is calculated based on the difference between the applicable consumer tariff and the cost of supply. - Additional Surcharge (AS):
This surcharge is meant to cover the fixed costs that DISCOMs continue to incur such as the maintenance of grid infrastructure, even when consumers choose open access options. - Wheeling Charges:
Wheeling charges are fees paid for using the local distribution network to transport electricity from the generator to the consumers premises. These charges are designed to cover the cost of maintaining the transmission infrastructure. - Standby Charges:
Standby charges ensure that DISCOMs can provide backup electricity in case of supply disruptions from the open access source. These charges are typically capped at a percentage above the standard tariff.
By understanding these charges businesses can plan their energy strategy better & make informed decisions about the total cost of getting power through open access.
Factors Affecting Open Access Charges
- Mode and Duration: Charges vary for short-term, medium-term, and long-term open access agreements.
- Connectivity and Voltage Levels: Costs differ based on where electricity enters and exits the grid.
- State Regulations: Each state has its own policies and frameworks influencing the overall charges.
Advantages of Open Access Solar for Businesses
- Sustainability: Adopting open access solar power helps businesses reduce their carbon footprint, enhancing their corporate social responsibility (CSR) image.
- 100% Solar Energy: Meet all electricity needs with renewable energy by sourcing directly from open access solar plants, bypassing traditional DISCOMs.
- No Space Required: Access solar energy from remote farms without the need for on-site installations, avoiding high upfront costs.
- Reduced Electricity Costs: Lower tariffs under open access power trading help businesses cut costs and improve operational efficiency.
Solar Open Access Policies in Maharashtra
Maharashtra’s solar open access policies are designed to allow businesses to use off-site solar energy that helps to reduce reliance on conventional power grids. Managed by the Maharashtra Electricity Regulatory Commission (MERC) these policies provide regulatory procedures. Under these regulations industries can access solar power through open access once they meet specific technical requirements. This approach supports the state goal of expanding solar energy use while ensuring compliance with established standards.
The Future of Solar Open Access in Maharashtra
In Maharashtra many businesses, especially medium-sized companies, data centers & high-energy users are adopting solar open access. With better technology, businesses can store extra solar power to use later, solving the problem of uneven energy supply.
Combining solar with wind or other renewables through hybrid systems will make power more stable and efficient. As more companies look to save money and go green, these changes will speed up the move to solar open access, giving businesses cleaner, more reliable, and cost-effective energy.
Frequently Asked Questions About Open Access Solar Power
What is open access in electricity?
Open access electricity allows consumers with a connected load of over 1 MW to buy power directly from any generator in the open market, including those producing open access solar power.
How does solar open access benefit businesses?
Open access solar helps businesses reduce power bills by giving them direct access to cheaper renewable energy. It also supports sustainability goals and reduces dependence on grid power.
What are the charges for open access solar power?
Charges for open access solar power may include transmission fees, wheeling charges, cross-subsidy surcharges, and state-specific regulatory costs. These can vary based on location and consumption patterns.
What is an open access power purchase agreement (PPA)?
An open access PPA is a long-term contract where a business agrees to buy power from a solar developer at fixed rates. This allows companies to lock in costs and secure green energy through open access solar.
How do you calculate solar access?
Solar access is calculated by looking at the sun’s path, shading, roof direction, and usage patterns. For off-site open access solar, developers assess how much electricity the open access solar power panel system will generate and match it to your needs.
How do you access solar energy?
You can access solar energy by installing rooftop panels or through open access solar power. In open access, power is generated off-site and sent to the grid, which credits your usage. This needs regulatory approval and a signed PPA.
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