Open Access Power

Urban residential consumers are hugely concerned with the cost of power which is increasing at a fast pace.  Is there an option available for them to reduce the cost of power? For the societies which are bulk buyer of energy, there is an option available for them to get cheaper power via open access.

 As per the regulations, a buyer can buy power via open access for quantity of more than 1 MW. The housing societies which are bulk buyer of electricity could very well be consuming power of 1 MW or more and can buy power via open access. There are many mechanism for them to buy power via open access, the one most practical is to buy power through exchanges. The trend for quite some time has been that the power available at exchanges is much cheaper than the SEB tariff rates.

So how can they buy power via open access through the exchange. The housing societies need to consider the following:

<(a)    What is the procedure to buy power from the exchanges

<(b)   What systems are needed with the buyer to buy power via open access

As far as the procedure to buy power is concerned, the key items are as follows:  

(a)    Whether the SEB has a process in place to allow the buyer to use open access (legally all states should provide it, practically not all of them provide the same)

(b)   There might be a specific infrastructure needed to buy power via open access. For example, the society may need a dedicated feeder to avail of open access.

(c)    The society can typically buy power from the energy exchange via  a member only

(d)   Society should consider the following cost items:

(i) One time cost of capital infrastructure needed such as installation of ABT meters

(ii) The energy charges to be paid to the exchange

(iii) Open access and carrier charges to be paid

(iv) Cross subsidy charges to be paid to the SEB

 

A careful analysis of above consideration would allow a society to take decision whether they can buy power via open access through an energy exchange.

The society then needs to consider how to adopt the systems needed to buy power via open access. The society needs to do the following in their decision making process:

(i)                  Forecast the day ahead power requirement

(ii)                Cost the power via open access and compare it with SEB tariff

(iii)               Submit a bid at the energy exchange

(iv)              Pay the bill to the SEB for the total power – regular tariff power and open access power

(v)                Verify the bills

The society needs a robust system to be able to do so. SmartCommunity.in provides a platform on cloud for the societies to buy power via open access.

 

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