With India experiencing a remarkable boom in renewable energy production, corporate and industrial (C&I) buyers are actively seeking ways to procure green power. In this article, we will explore the Open Access route to source green power, its advantages, and most importantly, provide valuable insights to assist C&I players in making informed decisions when choosing a power producer for Open Access Power.
India has firmly established itself as a global leader in renewable energy, ranking 4th worldwide in terms of generation capacity for both solar and wind. Boosted by the goal of achieving 500 GW of production capacity by 2030, the country's renewable energy sector has witnessed tremendous growth, with a total generation capacity of 122 GW in February 2023, excluding large hydro and nuclear plants. As one of the largest renewable energy markets worldwide, India offers abundant opportunities for C&I players to embrace clean and sustainable power solutions.
Conventionally, the industrial consumers had no choice but to receive their electricity from the area DISCOM and have no influence over the price. The electricity act of 2003 has made it possible for customers with sanctioned loads of more than 1 MW to purchase electricity directly from generators, pay specific fees and taxes, and lower the cost of power. The Ministry of Power last year issued Green Energy Open Access Policy which enabled the open access policy terms and enabled commercial and industrial sectors (C&I) with a consumption load less than 1 MW to procure power through the Open Access route.
For C&I players, Open Access provides an attractive alternative for procuring renewable energy due to the following reasons.
It is crucial for C&I players to understand that choosing a power producer in their renewable energy journey can significantly impact the success and long-term viability of their projects. By prioritizing these considerations, C&I players can make informed decisions that align with their unique requirements and contribute to a cleaner energy landscape in India.
Open Access Power Purchase Agreements (PPAs) have gained significant popularity due to their numerous advantages and their role in enabling companies to embrace sustainability. The growing recognition of Open Access is reflected in India's remarkable progress, with the country adding a cumulative capacity of 2.5 GW in CY 2022, according to a report by Mercom India. This represents a remarkable increase of approximately 92% compared to the 1.3 GW installed in 2021. Against this backdrop, the question comes: Are your company stakeholders currently engaged in discussions with any power producer for signing a PPA? The adoption of Open Access PPAs can be a transformative step towards achieving your sustainability goals and reaping the benefits of renewable energy integration.
Choosing the right power producer plays a pivotal role in maximizing the return on investment for Open Access RE projects. Sunsure Energy emerges as a trusted and reliable partner in this space. With their comprehensive in-house capabilities, Sunsure handles all aspects of the project, from land acquisition to grid connectivity to plant setup, ensuring a seamless and hassle-free experience. Boasting an impressive installed capacity of over 300 MWs, with an additional 1.1 GW currently under construction, Sunsure Energy showcases their commitment to scalability and renewable energy generation. Having served 60+ corporations across 16 Indian states, Sunsure Energy boasts a track record of quality and on-time power delivery.
With a private equity investment of $400 million USD from Partners Group, Sunsure Energy offers financial stability and long-term viability for Open Access PPAs. By partnering with Sunsure, C&I players can confidently navigate the Open Access landscape, securing a sustainable and cost-effective power supply for their operations.
In conclusion, C&I players in India have various options to procure renewable energy, with Open Access being an attractive route due to its regulatory advantages, cost savings, and operational simplicity. When selecting a power producer, evaluating factors such as reliability, capacity, sustainability, pricing, contractual terms, technical expertise, and reputation is crucial. Sunsure Energy stands out as an ideal partner, offering in-house capabilities, substantial installed capacity, strong financial backing, and a commitment to clean energy. By partnering with Sunsure Energy, C&I players can navigate the Open Access landscape with confidence and secure a sustainable and cost-effective power supply for their operations.