How much can Industries save through Open Access Power?

Electricity is one of the biggest operating costs for many industries. Whether it is a manufacturing plant, a textile mill, or a food processing unit, machines cannot run without power. For many companies, electricity bills take up a significant part of their monthly expenses. But what if industries could reduce those electricity costs by 30–50%?

This is exactly what Open Access power makes possible. Open Access is slowly changing how industries buy electricity in India. Instead of depending only on the local electricity distribution company (DISCOM), industries can now purchase electricity directly from power producers, especially renewable energy generators like solar and wind plants.

Traditionally, industries buy electricity from their state’s DISCOM. The electricity travels from power plants through the grid and reaches the factory, and the company pays the tariff set by the electricity board. With Open Access, industries get the freedom to buy electricity directly from another generator. The electricity still travels through the same grid infrastructure, but the industry signs a power purchase agreement with a different supplier — often a renewable energy company. Because renewable power generation costs have fallen significantly in recent years, this option often becomes much cheaper.

In many states, electricity tariffs for industries are higher because industries cross-subsidize other consumer categories like residential and agricultural users. For example, an industry might pay ₹8–₹10 per unit of electricity from the DISCOM. On the other hand, renewable energy purchased through Open Access may cost around ₹4.5–₹6 per unit, even after including additional charges like transmission and wheeling. This difference creates a significant opportunity for savings.

A Realistic Example of Savings:

Imagine a medium-sized manufacturing company that consumes 10 lakh units (1 million units) of electricity every month.

If the company buys power from DISCOM:

Electricity tariff = ₹9 per unit

Monthly electricity bill:

10,00,000 units × ₹9 = ₹90,00,000

That means the company spends 90 lakh rupees every month just on electricity.

If the same company uses Open Access solar power:

Cost of renewable electricity = ₹5.5 per unit

New monthly electricity cost:

10,00,000 units × ₹5.5 = ₹55,00,000

Monthly Savings

₹90 lakh − ₹55 lakh = ₹35 lakh saved every month

Annual Savings

₹35 lakh × 12 months = ₹4.2 crore saved per year

For any company, saving more than four crore rupees annually can make a huge difference. It can improve profitability, fund expansion plans, or support investments in new technology.

Open Access power does not just reduce electricity bills. It also provides other strategic advantages. Many industries today are trying to reduce their carbon footprint. By purchasing solar or wind power, companies can significantly reduce their dependence on fossil fuels. Large global companies also prefer suppliers that use renewable energy. So industries adopting clean power can strengthen their environmental credentials and attract more business. Another advantage is price stability. Renewable power agreements are often signed for long durations, sometimes 15–25 years. This allows companies to lock in electricity prices and avoid future tariff increases.

Open Access power works best for industries that consume large amounts of electricity. These include sectors like:

Manufacturing
Steel and cement plants
Textile industries
Automobile production
Data centers
Food processing units

These industries run heavy machinery for long hours, so electricity costs form a large part of their operating expenses. Even small reductions in power costs can significantly improve their financial performance. Electricity is no longer just a basic utility for industries. It has become an important factor that affects profitability and competitiveness. Open Access power offers industries a smarter way to procure electricity — one that can reduce costs, stabilize long-term energy prices, and support the transition to cleaner energy sources. For companies that consume large amounts of electricity, the savings can reach several crores every year. And in a competitive business environment, that kind of saving can make all the difference.