Green Energy Open Access (GEOA) is enabling industries across India to procure renewable electricity directly from solar and wind-rich states. With regulatory support from the Ministry of Power and oversight by the Central Electricity Regulatory Commission, inter-state renewable procurement is becoming a preferred strategy for cost optimization and sustainability.
This blog explains how to calculate Green Energy Open Access charges for a commercial and industrial consumer in Jharkhand sourcing solar power from Gujarat.
Inter-State Green Energy Open Access Cost Calculator (Gujarat to Jharkhand)
• ISTS waiver assumed for eligible renewable projects.
• Jharkhand open access charges vary based on voltage and consumer category.
• This calculator is only for representation and estimation purposes.
Understanding the Scenario
Let us assume the following:
- Source State: Gujarat
- Consumer State: Jharkhand
- Connected Load: 100 MW
- Monthly Energy Procurement: 3,00,000 units
- PPA Tariff: ₹3.40 per kWh
- Renewable Source: Solar
- Procurement Model: Third-party Green Open Access
- Consumer Category: Commercial and Industrial
Why Gujarat to Jharkhand Renewable Procurement is Increasing
Gujarat offers:
- Competitive solar tariffs
- Strong renewable infrastructure
- Large-scale projects
- Favorable policies
Jharkhand industries, particularly in steel, mining, and manufacturing, are adopting renewable energy to:
- Reduce electricity cost volatility
- Improve ESG scores
- Meet sustainability mandates
- Reduce carbon footprint.
Step 1: Power Purchase Agreement (PPA) Cost
The PPA tariff is the base electricity cost.
In this case:
- PPA tariff = ₹3.40 per kWh
- Monthly scheduled energy = 3,00,000 units.
This cost typically remains fixed for long-term contracts.
Step 2: Inter-State Transmission System (ISTS) Charges
The Government of India provides ISTS charge waivers for eligible renewable projects.
If the Gujarat project qualifies:
- ISTS charges = Zero.
If not:
- Typical ISTS = ₹0.10 to ₹0.50 per kWh.
The waiver plays a key role in improving landed cost.
Step 3: Inter-State Transmission Losses
Electricity transmitted over long distances through the national grid managed by Power System Operation Corporation results in losses.
Typical loss:
- 2% to 4%.
Assuming:
- ISTS loss = 3%.
Delivered energy:
- 3,00,000 × (1 – 0.03)
- Delivered energy = 2,91,000 units.
Step 4: State Transmission Charges in Jharkhand
After entering Jharkhand, electricity flows through the state transmission network.
Typical range:
- ₹0.20 to ₹0.50 per kWh.
Assuming:
- ₹0.30 per kWh.
Step 5: Wheeling Charges
Charges for using distribution infrastructure.
Typical range:
- ₹0.40 to ₹1.00 per kWh.
Assuming:
- ₹0.65 per kWh.
Step 6: Cross Subsidy Surcharge (CSS)
CSS is a major cost component for third-party open access.
Typical range in Jharkhand:
- ₹1.5 to ₹2.5 per kWh.
Assuming:
- ₹1.90 per kWh.
Government policy aims to gradually reduce CSS for green power.
Step 7: Additional Surcharge
This is levied to recover stranded costs.
Typical range:
- ₹0.30 to ₹0.80 per kWh.
Assuming:
- ₹0.50 per kWh.
Step 8: Scheduling and System Operation Charges
These are payable for grid management and scheduling.
Typical:
- ₹0.02 to ₹0.10 per kWh.
Assuming:
- ₹0.05 per kWh.
Step 9: Banking Charges (if applicable)
Banking allows energy carry-forward. For this example, no banking is assumed.
Important Disclaimer
This calculation example is only for representation and educational purposes. Actual Green Energy Open Access charges vary depending on regulatory approvals, voltage levels, project eligibility, and periodic tariff updates.
Step-by-Step Cost Calculation Example
Delivered Energy
Scheduled energy = 3,00,000 units
After ISTS loss of 3%:
Delivered energy = 2,91,000 units.
Landed Cost Components
| Component | Cost (₹/kWh) |
|---|---|
| PPA Tariff | 3.40 |
| Jharkhand Transmission | 0.30 |
| Wheeling | 0.65 |
| CSS | 1.90 |
| Additional Surcharge | 0.50 |
| Scheduling & SLDC | 0.05 |
Total Landed Cost = ₹6.80 per kWh.
Monthly Power Cost
2,91,000 × 6.80
= ₹19.78 lakh approximately.
Step 10: Compare with Jharkhand DISCOM Tariff
If the consumer tariff in Jharkhand is:
- ₹8 to ₹10 per kWh → Significant savings.
- ₹7 per kWh → Captive or hybrid model may be preferable.
Key Strategies to Reduce Costs
- Captive renewable model
- Solar and wind hybrid
- Storage integration
- Long-term PPAs
- High voltage connectivity
- Policy incentives
- Load factor optimization
- Time-of-day power procurement
- Corporate PPA aggregation
- ISTS waiver eligibility.
Future Outlook for Jharkhand Renewable Procurement
Industries in Jharkhand are increasingly transitioning to clean energy through:
- Inter-state procurement
- Corporate sustainability commitments
- Flexible procurement through exchanges such as Indian Energy Exchange
- Round-the-clock renewable energy
- Hybrid and storage-backed solutions.
Conclusion
For a 100 MW connected load consumer in Jharkhand, sourcing solar power from Gujarat at ₹3.40 per kWh can deliver strong economic and environmental benefits. With policy support and transmission waivers, inter-state Green Energy Open Access is expected to grow rapidly in eastern India.
