MUMBAI: Central Railway has played a crucial role in promoting the use of green energy for its power requirements. It pioneered the concept of procuring power through the Open Access method on Indian Railways, resulting in savings of Rs 6,005 crore, a senior officer said on Thursday.
“Earlier Indian Railways met its power requirements at high tariffs from State Electricity Boards or from DISCOMS (Distribution Companies). Indian Railways, over the time and aaaaato reduce expenditure, adopted various strategies. A major part of it was Open Access, which allows direct power purchase from cheaper sources such as Power Exchanges, Generators or Bilateral Agreements leading to reduced costs,” the official said.
Central Railway was the first zone on Indian Railways to procure power through Open Access in 2015. It has ensured total savings of Rs 6,005.42 crore from 2015-16 to the present, beginning with a modest saving of Rs 161,20 crore in 2015-16 to Rs 690,47 crore in 2024-25.
The savings have been calculated by comparing the actual power procurement cost under Open Access with the earlier procurement cost of Rs 8.69 per kWh (kilowatt-hour).
Benefits of Open Access:
- Cost Reduction: The shift to Open Access has significantly lowered the per-unit cost of power.
- Flexibility in Procurement: Open Access enables procurement from different sources, ensuring cost optimisation.
- Market-Based Pricing Advantage: Purchasing power from energy exchanges at competitive market rates instead of fixed tariffs has led to substantial savings.
- Increased Reliability: Multiple power sources ensure a more reliable supply.
- Reduced Dependence: Dependence on a single power source is minimised.
