This document discusses open access power purchase in India. Open access allows for the non-discriminatory use of transmission and distribution systems by licensees, consumers, and generators. It describes bilateral transactions for buying and selling power as well as collective transactions through power exchanges like IEX. Requirements for open access include installation of specialized meters, available transmission capacity, a contract demand over 1 MW, payment security, and no pending legal issues. Cost analyses are provided for purchasing 1 MW of power through IEX daily bidding and a bilateral fixed tariff agreement.

1. OPEN ACCESS POWER PURCHASE
Ecotec Consultancy Services

2. DEFINITION
 Electricity Act 2003: Open Access is defined as
“Open access” means the non-discriminatory provision for
the use of transmission lines or distribution system or
associated facilities with such lines or system by any
licensee or consumer or a person engaged in generation
in accordance with the regulations specified by the
Appropriate Commission.”

3. POWER TRADING:
 Bilateral Transactions –
 Sale/Purchase of Power
 Swapping Arrangement of Power (Energy Banking)
 Collective Transactions (IEX, PXIL)
 Renewable Power Trading
 Advisory
SERVICE OFFERINGS TO OUR CLIENTS
INNOVATION | INTEGRITY | PERFECTION

4. BIDDING TIME UPTO
11 AM, ONE DAY
PRIOR Ex. Trading
date : 24-2-2016,
Delivery Date :25-2-
2016
Volume cleared Report
and price are determined
by same day (trading
date) evening. Payment
terms will be advance of
one day consumption
Delivery starts from
date changing hours
00:00 to 24:00
BY IEX (Daily Bidding)
BY Bilateral Transaction (Fixed Tariff Agreement)
Agreement between
Consumer and
Provider for a longer
period with Fixed Rate
Bill will be generated
monthly. Payment
terms will be within
seven days from
monthly Bill generation
date like ISCOM.

5. PRE-REQUISITES OF OPEN ACCESS
 Special Energy meters (ABT Meter – 0.2 S class)
are required to be installed for energy accounting.
 Available Transmission Corridor. (11KV, 33KV,
66KV,110KV etc.)
 Contract demand should be more than 1 MW (1125
KVA).
 Payment security for availing Open Access.
 No court case pending related to BESCOM.

6.  ANNUAL IEX REGISTRATION FEES
: Rs One lakh + SERVICE TAX
 MONTHLY NOC FEES
: Rs 5000 dd in favor of CHIEF ENGINEER SLDC,
KPTCL (Applicable for month industry wish to
trade)
 ABT Meter if not installed (As per vendor
Quotation)

7. OPEN ACCESS COST ANALYSIS (1MW PURCHASE BY IEX)
BIDDING COST ANALYSIS
Description Total per day
Volume to be purchased in an Hour in kWh 1000
No. of Hours 24.00
Actual Rate As on Rs. Per Mwh 3200.00
Actual Rate As on Rs. Per kWh 2.95
ADJUSTMENT OF POC/CTU TRANSMISSION , STATE TRANSMISSION & DISTRIBUTION LOSSES
Unit purchased from power exchange in kWh 24000.00
Adjustment of POC/CTU Transmission Losses 1.95% 23532.00
Adjustment of State Transmission Losses 3.47% 22715
Distribution loss 4.20% 21761
ADJUSTMENT OF CHARGES & CROSS SUBSIDY
Cost of Energy as per Market Clearing Price 70800.00
NLDC Application Fee in Rs. Per Day* 5.00 5.00
NLDC Scheduling & Operating Charges in Rs Per Day* 180.00 180.00
NOC charges per month 5000 5000.00
POC / CTU Transmission Charges in Rs. Per kWh 0.2694 6465.60
State Transmission Charges in Rs. Per kWh 0.08 1920.00
SLDC Scheduling and Operating Charges in Rs. Per Day 1000 1000.00
IEX Transaction Fees in Rs. Per kWh 0.0230 552.00
Trading margin in Rs. Per kWh 0.01150 276.00
Cross Subsidy in Rs. Per kWh 1.18 25678.44
Cost to meet RPO in Rs. Per kWh (Non-Solar) 0.08440 1986.10
Cost to meet RPO in Rs. Per kWh (Solar) 0.01767 415.81
Total amount to be paid in Rs. 114278.95
Landed cost to in Rs. Per kWh 5.25
BESCOM Variable Cost to Consumer in Rs. Per kWh 6.43
Total billing Cost as per MESCOM 139998.28
Total billing Cost as per Power Trading 114278.95
savings / Losses 25719.33
Adjustments 0
TOTAL SAVINGS 25719.33

8. COST ANALYSIS FOR BILATERAL TRANSACTION
(FIXED TARIFF AGREEMENT)
 Savings in the range of Rs 1.10 to 1.25 per Unit
from base rate of ISCOM.
 Agreement will be for two years. Can be renewed
with mutual consent.
 IEX price will be varied as per Demand-supply. FTA
price will be fixed irrespective of demand-supply.

9. PROS AND CONS (IEX)
 Pros
 Can be bought independently for slot of 15 mins each in a day
 Can be purchased from one slot of 15 mins to all slot of 24 hrs each
in a day as per operation schedule.
 No long Term Commitment required as it is Day Ahead Process.
 If bid is not cleared than Power will be continued from ESCOM at
ESCOM Price
 Cons
 Whatever is purchased for the duration, need to consumed.
 Power purchased will be considered as consumed even if there is
power cut from BESCOM
 Price of Exchange determined on trading date based on Demand
Supply Curve for every 15 minutes interval.