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Earth Energy Log
policy

Open Access

Also known as: Green open access, Third-party sale

A regulatory right allowing large electricity consumers to buy power directly from a generator of their choice using the incumbent utility's network for a fee.

Open access separates the sale of electricity from ownership of the wires. A qualifying consumer contracts directly with an independent generator and pays the distribution utility regulated charges — wheeling, cross-subsidy surcharge, additional surcharge and losses — for transporting it. India's Green Open Access Rules lowered the eligibility threshold to 100 kW for renewable power, opening the mechanism to mid-sized commercial and industrial buyers rather than only heavy industry. It is the primary route by which Indian corporates procure renewable energy at scale, and the economics turn almost entirely on the surcharge regime, which state commissions set and periodically revise. Because those charges are the utility's compensation for losing a paying customer, open access sits in permanent tension with distribution company finances.

Related terms

  • PPA Long-term contract for the sale of electricity from a generator to a buyer at ag
  • DISCOM Electricity distribution utility that buys power wholesale and sells to end cons
  • RPO Indian regulation requiring DISCOMs and large consumers to source a minimum perc
  • CERC India's central regulator setting tariffs, grid codes, and ancillary services ru