Green Energy Open Access (GEOA) is becoming a key strategy for industries across India to reduce electricity costs and transition toward clean energy. Supported by progressive regulations from the Ministry of Power and oversight by the Central Electricity Regulatory Commission, inter-state renewable procurement is gaining momentum in eastern industrial states such as Odisha.
This blog explains the step-by-step calculation of Green Energy Open Access charges for a commercial and industrial consumer in Odisha sourcing renewable power from Gujarat.
Inter-State Green Energy Open Access Cost Calculator (Gujarat to Odisha)
• ISTS waiver assumed for eligible renewable projects.
• Odisha 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: Odisha
- 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 Odisha Renewable Procurement is Growing
Odisha has a large concentration of energy-intensive industries such as steel, aluminum, cement, and mining. These sectors are increasingly shifting to renewable energy due to:
- Rising industrial electricity tariffs
- Sustainability and ESG commitments
- Corporate net-zero targets
- Stable long-term renewable pricing
- Reduced carbon emissions
Gujarat offers cost-competitive solar and wind power, making it an ideal sourcing destination.
Step 1: Power Purchase Agreement (PPA) Cost
The PPA tariff forms the base of the landed electricity cost.
In this case:
- PPA tariff = ₹3.40 per kWh
- Monthly scheduled energy = 3,00,000 units
This price is typically fixed over the contract tenure.
Step 2: Inter-State Transmission System (ISTS) Charges
Eligible renewable projects commissioned within defined timelines receive ISTS transmission charge waivers.
If the Gujarat project qualifies:
- ISTS transmission charges = Zero
If not:
- Typical ISTS range = ₹0.10 to ₹0.50 per kWh.
Step 3: Inter-State Transmission Losses
Electricity losses occur while transmitting power through the national grid, coordinated by Power System Operation Corporation.
Typical loss range:
- 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 Odisha
After reaching Odisha, electricity flows through the state network.
Typical range:
- ₹0.20 to ₹0.50 per kWh.
Assuming:
- ₹0.28 per kWh.
Step 5: Wheeling Charges
Charges for distribution network usage.
Typical range:
- ₹0.40 to ₹1.10 per kWh.
Assuming:
- ₹0.60 per kWh.
Step 6: Cross Subsidy Surcharge (CSS)
CSS compensates DISCOMs when consumers shift to open access.
Typical range in Odisha:
- ₹1.5 to ₹2.3 per kWh.
Assuming:
- ₹1.85 per kWh.
Policy reforms aim to reduce CSS over time.
Step 7: Additional Surcharge
This helps recover stranded network costs.
Typical range:
- ₹0.30 to ₹0.80 per kWh.
Assuming:
- ₹0.45 per kWh.
Step 8: Scheduling and System Operation Charges
Charges for scheduling, grid balancing, and coordination.
Typical:
- ₹0.02 to ₹0.10 per kWh.
Assuming:
- ₹0.05 per kWh.
Step 9: Banking Charges (if applicable)
Banking enables adjustment of surplus power. This example assumes no banking.
Important Disclaimer
This calculation example is only for representation and educational purposes. Actual Green Energy Open Access charges vary based on regulatory approvals, voltage levels, consumer category, project eligibility, and periodic tariff revisions.
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 |
| Odisha Transmission | 0.28 |
| Wheeling | 0.60 |
| CSS | 1.85 |
| Additional Surcharge | 0.45 |
| Scheduling & SLDC | 0.05 |
Total Landed Cost = ₹6.63 per kWh.
Monthly Power Cost
2,91,000 × 6.63
= ₹19.29 lakh approximately.
Step 10: Compare with Odisha DISCOM Tariff
If the industrial tariff in Odisha is:
- ₹8 to ₹10 per kWh → Significant savings.
- ₹7 per kWh → Captive or hybrid structures may be preferable.
Key Strategies to Reduce Costs
- Captive renewable structure
- Solar and wind hybrid procurement
- Storage-backed renewable power
- High voltage connectivity
- Long-term corporate PPAs
- Aggregation of loads
- Time-of-day scheduling
- Policy incentives
- ISTS waiver eligibility
- Load factor optimization.
Future Outlook for Renewable Procurement in Odisha
Odisha is emerging as a major renewable energy consumer due to:
- Industrial decarbonization
- ESG reporting and sustainability mandates
- Flexible procurement through exchanges such as Indian Energy Exchange
- Hybrid renewable and storage projects
- Round-the-clock renewable energy.
Conclusion
For a 100 MW connected load consumer in Odisha, sourcing renewable energy from Gujarat at ₹3.40 per kWh offers strong economic and environmental advantages. With ISTS waivers and favorable policies, inter-state Green Energy Open Access is expected to grow significantly in eastern India.
