OA Wind

Opportunities in Open Access Transactions and Short Term PPAs in Wind Power Business of India

E-version/Single User Price: $ 999.00

Opportunity in Open Access Transaction and Short Term Power Purchase Agreements for Developers, Consumers and Traders in Wind Power Business of India

In recent step, regulatory commission allowed distribution utilities to renegotiate the long term PPAs to a lower degree of tariffs which is determined by reverse auction of the wind power tariffs. In recently held auction, sharp decline in the tariff of wind power was witnessed. The tariff fell close to INR 1-1.5 per Unit and reached a level of INR 3.46 per Unit, which is significantly lower than Feed in Tariffs of some states. It is also anticipated that wind power generators may further bid aggressively taking the tariff to sub INR 3 levels. These tariff levels will have the direct impact on the existing plants. Further, owing to such lower tariffs, distribution utilities can put a pressure on to generators to renegotiate PPAs or simply dishonour them. This issue is critical and long term PPAs can come under jeopardy, hence, the opportunity for the wind power developers lie in signing short term PPAs and selling power directly to the consumers through Open Access route.

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Payment delays by distribution utilities to wind power projects in the country is posing a major threat to the feasibility of the projects. These delays are hurting liquidity of the projects and also delaying payment to lenders. Discoms in Tamil Nadu, Maharashtra, Madhya Pradesh and Rajasthan have found it difficult to pay wind power producers on time. Discoms in Maharashtra, Tamil Nadu, Madhya Pradesh and Rajasthan have delayed payments to generators of wind power by as much as 8-10 months, putting their cash flows under tremendous pressure and sending negative signals for developers and investors, which in turn can turn the tide towards development of small scale wind power projects catering to the need of specific chunk of consumers.

Some trivial and yet complex questions associate with open access mechanism which needs to addressed through a pan India study which should prove to be a path finding guide for the project developers as well buyers to felicitate the same.

Key Queries Resolved

  • Which state has least regulatory barriers or least cross-subsidy surcharge (CSS) applicable to bulk buyers?
  • Whether the tariff discovered in third-party power sales agreements sustainable for long-term i.e. for a period of 10-15 years?
  • What are the various power procurement models which shall be most beneficial given the current regulatory paradigm and policy environment in India?
  • What are the various incentives/benefits to the consumers/generators to wheel power through open access?
  • Which region is most suitable for affecting the open access transactions having the largest cluster of industries, corporates and bulk consumers?
  • Which region has more penetration of short term transactions through wind power?
  • Which transaction i.e. bilateral or collective is preferred for wind?

Business Case For Open Access Mechanism In India

  • Rising popularity among developers especially renewable players to go for third party direct agreements
  • Benefits widely available to state transmission utilities and private transmission utilities to felicitate the open access mechanism through wind.
  • 1500 MW of green power is sold to big corporates through direct agreements and the trend is northbound as more and more corporates are joining in the race.
  • Since wind generation is erratic, the utility can source power from them as per availability and supply to consumers as per their needs 24×7.
  • Reduction in tariff by a quantum of 15-20% through this mechanism with respect to distribution utilities tariff.
  • States of Karnataka, Tamil Nadu, Andhra Pradesh, Telangana in southern region of India and Rajasthan, Punjab and Haryana in Northern region of the country are fast catching up with open access transactions.
  • Increased impetus on rural electrification.
  • Increasing number of bilateral and collective transactions of power through Open Access.

Contents and Coverage

  • Open Access Transactions in India
  • Open Access- Sustainability of Demand Supply Metrics
  • Tariff Trends and Outlook in India
  • Examining Liberalism for Green Power in Open Access Mechanism in States
  • Regional Overview of Open Access Market – Wind Power (Key States)
  • Region Wise Customer Profiling & Key PPA terms for Open Access Sale of Power-Wind Power
  • State Wise Open Access Transactions Details through Wind

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USPs associated with the report are as follows:

  • First hand sector knowledge and inputs
  • Primary research inputs from F2F interviews with domain experts
  • Experts insights and market reviews taken into consideration
  • Validated data and analysis
  • Opportunity mapping and market sizing
  • Germinates from minds that think fresh to evolve path finding guide for all stake holders through quality information and analysis
  • Free query handling and analyst support for three months from the date of report procurement

Key Highlights:

  • Business Case for Open Access Transactions in India
  • Mode of Sustainability for Demand of Open Access in India through Wind
  • Tariff Movements for Open Access through Wind – Key States
  • Examining Liberalism for Green Power in Open Access Mechanism in States
  • Filtering of Major Open Access Consumers / Pockets for Wind Power
  • Filtering Major Open Access Customers/ Pockets for IPP’s
  • Filtering Opportunities for STU’s and Bulk Consumers
  • Region Wise Customer Profiling
  • Regulatory Consideration for Open Access in India
  • Procurement Models for Open Access Transactions in India
  • Parametric Ranking of States Generating Business Case for Long Term Open Access

Report Insights

  • Estimating business case of Open Access Transaction through utility scale wind power plants
  • Opportunities in bilateral and collective transactions on per state basis in the country for wind
  • Business case for transmission utilities for capacity creation for true open access
  • Short-term PPA transaction for utility scale and group captive power plants
  • Track of consumer base and potential consumers for OA transactions on pan India basis
  • Detailed track of OA transactions and associated tariff with models based feasibility assessment
  • Opportunity for value chain players involved in OA transactions in the country

Must Buy For

  • Wind Power Developers
  • Captive Power Developers
  • IPPs
  • Power Distribution Companies (DISCOMs)
  • Power Transmission Utilities
  • Power Traders
  • Bulk Consumers
  • Industrial/Manufacturing Units
  • Corporates
  • Government Agencies

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