Green Energy Open Access (GEOA) is helping industries across India procure renewable electricity directly from solar and wind-rich regions. With regulatory support from the Ministry of Power and oversight by the Central Electricity Regulatory Commission, many industrial clusters are transitioning toward clean power. Punjab is emerging as a strong market due to its textile, steel, and agro-processing industries that face high electricity tariffs.
This blog explains the step-by-step process to calculate Green Energy Open Access charges for a commercial and industrial consumer in Punjab sourcing solar power from Gujarat.
Inter-State Green Energy Open Access Cost Calculator (Gujarat to Punjab)
• ISTS waiver assumed for eligible renewable projects.
• Punjab 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: Punjab
- 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 Punjab Renewable Procurement is Increasing
Punjab has several energy-intensive sectors such as:
- Textile manufacturing in Ludhiana
- Steel rolling mills
- Agricultural and food processing
- Export-oriented industries
These sectors are increasingly adopting renewable procurement to:
- Reduce operational costs
- Meet sustainability commitments
- Hedge against rising DISCOM tariffs
- Improve ESG reporting.
Step 1: Power Purchase Agreement (PPA) Cost
The PPA tariff is the foundation of the total electricity cost.
In this case:
- PPA tariff = ₹3.40 per kWh
- Monthly scheduled energy = 3,00,000 units
This long-term price offers cost stability.
Step 2: Inter-State Transmission System (ISTS) Charges
The Government of India provides ISTS transmission charge waivers for eligible renewable projects.
If the Gujarat project qualifies:
- ISTS charges = Zero
Otherwise, ISTS charges may range from ₹0.10 to ₹0.50 per kWh.
Step 3: Inter-State Transmission Losses
Power losses occur during transmission through the national grid coordinated by Power System Operation Corporation.
Typical loss:
- 2% to 4%.
Assuming:
- ISTS loss = 3%.
Delivered energy:
- 3,00,000 × (1 – 0.03)
- Delivered = 2,91,000 units.
Step 4: State Transmission Charges in Punjab
Electricity moves through the Punjab state network after reaching the state.
Typical range:
- ₹0.25 to ₹0.60 per kWh.
Assuming:
- ₹0.30 per kWh.
Step 5: Wheeling Charges in Punjab
Applicable for the use of distribution infrastructure.
Typical range:
- ₹0.40 to ₹1.00 per kWh.
Assuming:
- ₹0.70 per kWh.
Step 6: Cross Subsidy Surcharge (CSS)
CSS compensates the DISCOM when consumers shift to open access.
Typical range in Punjab:
- ₹1.8 to ₹2.5 per kWh.
Assuming:
- ₹2.00 per kWh.
Step 7: Additional Surcharge
Applicable to recover stranded infrastructure costs.
Typical range:
- ₹0.30 to ₹0.80 per kWh.
Assuming:
- ₹0.50 per kWh.
Step 8: Scheduling and System Operation Charges
Charges for scheduling, grid management, and coordination.
Typical range:
- ₹0.02 to ₹0.10 per kWh.
Assuming:
- ₹0.05 per kWh.
Step 9: Banking Charges (if applicable)
Banking allows surplus adjustment. 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, consumer category, project eligibility, voltage level, 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 |
| Punjab Transmission | 0.30 |
| Wheeling | 0.70 |
| CSS | 2.00 |
| Additional Surcharge | 0.50 |
| Scheduling & SLDC | 0.05 |
Total Landed Cost = ₹6.95 per kWh.
Monthly Power Cost
2,91,000 × 6.95
= ₹20.22 lakh approximately.
Step 10: Compare with Punjab DISCOM Tariff
If the industrial tariff in Punjab is:
- ₹9 to ₹10 per kWh → Significant savings.
- ₹8 per kWh → Captive or hybrid models may offer better economics.
Key Strategies to Reduce Costs
- Captive renewable structure
- Solar and wind hybrid procurement
- Storage integration
- High voltage connectivity
- Long-term contracts
- Corporate PPA aggregation
- Time-of-day scheduling
- Policy incentives
- ISTS waiver eligibility
- Load factor optimization.
Future Outlook for Renewable Procurement in Punjab
Punjab is expected to witness strong growth in renewable procurement due to:
- Corporate sustainability targets
- Export-driven industries
- 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 Punjab, sourcing renewable energy from Gujarat at ₹3.40 per kWh offers strong cost savings and sustainability benefits. With supportive policies and ISTS waivers, inter-state Green Energy Open Access will play a key role in the state’s industrial decarbonization.
