Green Energy Open Access (GEOA) is emerging as a powerful solution for industries to procure renewable electricity at competitive tariffs. With strong regulatory backing from the Ministry of Power and operational oversight by the Central Electricity Regulatory Commission, inter-state renewable power procurement is gaining momentum across eastern and northern India. Bihar, an emerging industrial state, is witnessing growing demand for cost-effective and sustainable power.
This blog explains the step-by-step process to calculate Green Energy Open Access charges for a commercial and industrial consumer in Bihar sourcing renewable solar power from Gujarat.
Inter-State Green Energy Open Access Cost Calculator (Gujarat to Bihar)
• ISTS waiver assumed for eligible renewable projects.
• Bihar 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: Bihar
- Connected Load: 100 MW
- Monthly Energy Procurement: 3,00,000 units
- PPA Tariff: ₹3.40 per kWh
- Renewable Source: Solar
- Consumer Category: Commercial and Industrial
- Procurement Model: Third-party Green Open Access
Why Gujarat to Bihar Renewable Procurement is Increasing
Bihar is seeing industrial growth in sectors such as:
- Food processing
- Cement
- Textiles
- Agro-industries
- FMCG manufacturing
These industries are increasingly adopting renewable procurement to:
- Control energy costs
- Improve ESG performance
- Meet sustainability mandates
- Achieve long-term tariff stability.
Gujarat offers reliable renewable supply with competitive tariffs, making it an ideal sourcing state.
Step 1: Power Purchase Agreement (PPA) Cost
The PPA tariff is the base cost.
In this case:
- ₹3.40 per kWh
- Monthly scheduled energy = 3,00,000 units.
Step 2: Inter-State Transmission System (ISTS) Charges
The Government of India provides ISTS charge waivers for eligible renewable projects.
If the Gujarat solar project qualifies:
- ISTS charges = Zero.
If not:
- Typical range = ₹0.10 to ₹0.50 per kWh.
Step 3: Inter-State Transmission Losses
Electricity losses occur while transmitting through the national grid coordinated by Power System Operation Corporation.
Assuming:
- ISTS loss = 3%.
Delivered energy:
- 3,00,000 × (1 – 0.03)
- Delivered energy = 2,91,000 units.
Step 4: State Transmission Charges in Bihar
After reaching Bihar, electricity flows through the state transmission network.
Typical range:
- ₹0.25 to ₹0.50 per kWh.
Assuming:
- ₹0.30 per kWh.
Step 5: Wheeling Charges
Charges for using the distribution network.
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 Bihar:
- ₹1.8 to ₹2.4 per kWh.
Assuming:
- ₹1.95 per kWh.
Step 7: Additional Surcharge
This helps recover stranded infrastructure costs.
Typical range:
- ₹0.30 to ₹0.90 per kWh.
Assuming:
- ₹0.50 per kWh.
Step 8: Scheduling and System Operation Charges
Charges payable for scheduling and grid coordination.
Assuming:
- ₹0.05 per kWh.
Step 9: Banking Charges (if applicable)
This example assumes no banking.
Important Disclaimer
This calculation example is only for representation and educational purposes. Actual Green Energy Open Access charges vary depending on regulatory approvals, consumer category, voltage level, 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 |
| Bihar Transmission | 0.30 |
| Wheeling | 0.65 |
| CSS | 1.95 |
| Additional Surcharge | 0.50 |
| Scheduling & SLDC | 0.05 |
Total Landed Cost = ₹6.85 per kWh.
Monthly Power Cost
2,91,000 × 6.85
= ₹19.93 lakh approximately.
Step 10: Compare with Bihar DISCOM Tariff
If industrial tariffs in Bihar are:
- ₹8 to ₹10 per kWh → Significant savings.
- ₹7 per kWh → Captive renewable or hybrid procurement may offer better economics.
Key Strategies to Reduce Costs
- Captive renewable model
- Solar and wind hybrid
- Energy storage integration
- High voltage connectivity
- Long-term contracts
- Load aggregation
- Time-of-day scheduling
- ISTS waiver eligibility
- Corporate PPAs
- Policy incentives.
Future Outlook for Renewable Procurement in Bihar
Bihar is expected to witness increasing adoption of renewable energy due to:
- Industrial growth
- Rising electricity demand
- Sustainability commitments
- Flexible procurement through exchanges such as Indian Energy Exchange
- Hybrid and round-the-clock renewable solutions.
Conclusion
For a 100 MW connected load consumer in Bihar, sourcing renewable energy from Gujarat at ₹3.40 per kWh provides strong economic and sustainability benefits. As policies continue to evolve, inter-state Green Energy Open Access is expected to play a crucial role in Bihar’s industrial energy transition.
