Open Access Solar Power Plant

Open Access is a policy mechanism in India and many other countries that allows large electricity consumers to buy electricity directly from independent power producers (IPPs), bypassing traditional distribution companies (DISCOMs). This is particularly relevant for companies looking to procure solar power from a large-scale solar plant.

How Open Access Works

Eligibility: Typically, consumers with a connected load of 1 MW or more are eligible for open access.
Purchase Agreements: Consumers can enter into Power Purchase Agreements (PPAs) with solar power producers, often for long-term periods (10-25 years).
Transmission and Wheeling: Electricity generated from a remote solar power plant is transmitted through the state’s grid to the consumer. The consumer pays wheeling charges for the use of the transmission infrastructure.
Tariff: Open access tariffs are usually lower than retail tariffs offered by local DISCOMs, making it financially attractive for large consumers

Types of Open Access

Short-Term Open Access (STOA): Contracts for a short period, typically up to a year.
Medium-Term Open Access (MTOA): Contracts ranging from 1-5 years.
Long-Term Open Access (LTOA): Contracts extending beyond 7 years, typically with fixed tariffs for solar power over the period.

Advantages of Open Access

Cost Savings: Access to cheaper solar energy tariffs compared to traditional grid electricity.
Flexibility: Businesses can choose their power supplier and negotiate terms directly.
Sustainability: Enables companies to meet renewable energy commitments and reduce carbon footprints.
Energy Security: Large industrial units can ensure reliable, long-term energy supplies through dedicated PPAs.

Benefits from Open Access?

Large Industries: Manufacturing plants, tech companies, and large commercial consumers can reduce their electricity bills by sourcing power through open access.
Commercial Parks: Business parks and SEZs (Special Economic Zones) can benefit from cheaper and cleaner power.
Corporate Sustainability Programs: Companies committed to green energy can meet their renewable energy targets by sourcing solar power directly.