Open Access enables corporates and industries to buy power from the open market and meet their electricity needs, while benefiting from lower than grid electricity tariffs. This is beneficial for clients who do not have enough roof space available, and thus need to set up a solar power plant at a remote location.
CAPTIVE CAPEX MODEL
In the captive capex model, the buyer of the utility scale solar project puts in the upfront capital investment for the project. The buyer owns the solar plant and the power generated is used for self consumption. Avco Energy takes the responsibility of the turnkey EPC of the project right from project evaluation to final installation and commissioning. Our dedicated team, also takes care of the O&M of the plant.
GROUP CAPTIVE MODEL
In the group captive model, a solar power project is developed for the collective use of multiple industrial or commercial consumers. For a group captive project, a Special Purpose Vehicle (SPV) would be set up, wherein the corporate buyer(s) would hold only 26% of the equity portion of the project and needs to collective consume a tleast 51% of the power produced. Multiple corporate clients could come together to pool in for the equity portion. In this case also, Avco Energy will take full responsibility to develop, operate, and maintain the solar power plant.
FREQUENTLY ASKED
What is Open Access?
Open access power is a regulatory mechanism that allows a grid-connected consumers with a contract demand of 1000 kVA or above to meet a fraction of their entire electricity requirements via alternate energy sources.
How will the Group Captive Power Scheme work?
Let’s say that Company A along with company B and company C decide to bring down their electricity costs. Collectively they install a solar power plant with 26% equity, with Avco energy arraigning the remaining 74%. Now company A,B,C can either consume the entire electricity produced for their own use, or consume the minimum 51% power produced. In the latter case, they could sell the remaining 49% power to Company X, Y and Z. This makes the whole group part of the group captive power scheme. A Special Purpose Vehicle (SPV) with an underlying Power Purchase Agreement is created for the involved parties.
How does Open Access help power consumers to meet their sustainability and green initiative goals?
A typical rooftop solar power plant may not have enough space available for corporate clients to meet a significant portion of their power demands. Open Access gives consumers the option to meet their power demands and renewable energy goals, by setting up a solar power plant at a remote location.
