Open Access Solar Power

Open Access Solar Power

What is Open Access?

Open Access enables large power consumers with more than 1 MW connected load to buy relatively cheaper power directly from power producers (open market). While, conventional consumers do not have choice except the AREA DISCOM for electricity supply & have no control over the rate. The electricity act 2003, enabled consumers with more than 1 MW of sanctioned load to buy electricity directly from power producers, pay some duties and taxes and reduce cost of power.

Based on the location of the electricity Consumer and power producer, Open Access can be classified as follows:

  • Inter-State Open Access: In this, the consumer and power producer belong to different states and need to follow Central Electricity Regulatory Commission (CERC) regulations.
  • Intra-State Open Access: In this, the consumer and power producer, belong to the same state and need to follow State Electricity Regulatory Commission (SERC) regulations.

What is Open Access Solar Power?

Open Access solar power or more appropriately solar power through Open Access is an arrangement where power producer establishes a solar power plant at an appropriate location and signs a medium/long-term power purchase agreement with a consumer.

What is the mechanism of Open Access Solar Power?

Open Access Solar Power Mechanism

 

For Solar power through open access, the principal governing contract is a long-term (10 years or more) Solar Power Purchase Agreement (PPA) signed between consumer and power producer. The power producer commits to supply agreed number of units on yearly basis for the agreed tariff for the PPA term. The taxes & open-access duties are applied as per the prevailing state-government norm.

How is open access solar power beneficial than normal open access power?

A remarkable feature of open access in solar has been Intra-State Open Access Arrangements where both electricity producing solar farm & consumer are located in the same state. These Intra State arrangements take advantage of the exceptions & waivers given by various state governments, resulting in increased cost savings to the consumer. Consequently, the net landed price to customer is less than the power purchased through conventional power producers.

You can drop an email to info@yellowhaze.com for more information on solar power through open access. Yellow Haze energy provides Open-Access Solar power solutions  in Rajasthan, Madhya Pradesh, Haryana & Karnataka.

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Yellow Haze Energy is a Solar Energy based startup focussed on improving consumer choices for electricity by use of Solar Power.