A textile manufacturer cut its per unit energy cost by 21%.
A Uttar Pradesh based textile industry with a contracted demand of 8.37 MW locked in a lower, stable tariff for ten years through an open access energy PPA structured by Prakash Renewable Power.
At a glance
The background
The facility was sourcing power entirely from the state DISCOM, paying an energy charge of Rs. 6.80 per unit plus an electricity duty of Rs. 0.51, an effective rate of Rs. 7.31 per kWh. Rising DISCOM tariffs and the growing availability of competitively priced renewable energy prompted a move to open access. The objective was simple: lock in a lower, stable tariff for a meaningful period without compromising reliability.
The solution
PRP structured a 10 year fixed tariff PPA under the open access framework, drawing power from a 15 MW solar project connected at 220/132/33 kV UPPTCL. The buyer purchases solar at a fixed contracted tariff delivered to its facility at 33 kV, while PRP manages all scheduling, transmission and regulatory coordination, including SLDC registration and monthly operating charges.
Energy volumes
The contracted quantum is approximately 1,50,000 units per MW per month, giving a monthly supply of about 12,55,500 kWh.
Transmission and loss adjustments
As with all open access transactions in UP, contracted volumes are adjusted for transmission and distribution losses before net units are credited to the buyer.
Full cost breakdown and savings.
A contracted tariff of Rs. 5.30 and an effective all in cost of Rs. 5.79 both sit below the DISCOM rate of Rs. 7.31.
The contracted solar tariff is Rs. 5.30; statutory charges bring the all in cost to Rs. 5.79, still Rs. 1.52 below the DISCOM rate.
(before PRP)
62.5 L
(via PRP)
The monthly bill drops from about Rs. 91.8 lakhs under DISCOM to about Rs. 68.3 lakhs via PRP.
At current DISCOM rates, cumulative savings reach about Rs. 21.5 crore by year 10. The actual saving is likely higher as DISCOM tariffs continue to rise.
Note on buyer side charges
State transmission charges (Rs. 0.2674/kWh) and wheeling charges (Rs. 0.9985/kWh) appear in the charge schedule but reflect zero impact in this billing model, which suggests they are bundled within the contracted tariff or handled through a separate regulatory mechanism. The buyer should confirm the treatment with PRP at billing commencement. The Cross Subsidy Surcharge of Rs. 5,77,763 per month is payable by the buyer and is already factored into the effective cost of Rs. 5.79/kWh. It is a statutory charge for open access consumers in UP and is not avoidable.
Cost certainty
A fixed Rs. 5.30/kWh tariff for ten years, insulating the business from DISCOM tariff increases.
Meaningful savings
Rs. 1.52 per unit against the current DISCOM rate, a ~21% reduction in energy cost.
Sustainability
100% solar power, supporting ESG and green energy commitments.
More case studies
Could your site be next?
If your sanctioned load is over 1,000 kVA, there is likely an open access energy structure that works for you. We will tell you whether it does and what it would take to make it happen.