CAPTIVE POWER POLICY

Prepared byNitesh Gupta

Inception
Section 44 of the Electricity(Supply) Act, 1948 gave birth to Captive Generation.

Any person (other than central govt. gencos ) to

establish or to acquire a new generating station or to extend any major unit of plant has to take permission from SEB
If capacity > 25MW then SEB required to consult

CEA

Definition given under IEA 2003

These restrictions & control on captive generation in Supply Act, 1948 is removed under Electricity Act 2003, Section 2 (8) Captive generating plant means a power plant set up by any person to generate electricity primarily for his own use and includes a power plant set up by any co-operative society or association of persons for generating electricity primarily for use of members of such cooperative society or association. Captive generation is generation primarily

Section 9. (Captive generation):

(1)
A

person may construct, maintain or operate a captive generating plant and dedicated transmission lines primarily for his own use, and he can sell the surplus power available to the grid.

Owner can construct dedicated transmission line for carrying

electricity from captive plant to the destination.

No requirement of license for supplying power to a licensee and

open access consumer

Section 9. (Captive generation):

(2) Electricity generated from captive plant can be transmit through the grid to the destination.
He should have the right to open access

in the intervening transmission facilities, subject to availability of transmission capacity.

Availability of Transmission facility determined by the central/ state

Transmission Utility
Dispute if any on the issue shall be studied and settled upon by the

Appropriate Commission.

National electricity policy

Captive power plant facilitate the creation of employment

opportunities through speedy and efficient growth of industry.

Captive power plant help in meeting the demand for

power by harnessing the surplus capacity.

Grid inter-connections for captive generators shall be

facilitated as per section 30 of the Act(Transmission within a State).

National Tariff Policy

Distribution licensees can buy power from

Captive Plant using the guidelines issued by the Central Government under section 63 of the Act.
Captive generators can be allowed to

inject into the grid under the Availability Based Tariff (ABT) mechanism.

Electricity Rules 2005

Not

< than 26 % of the ownership should be < than 51 % of the aggregate

held by the captive user and

Not

electricity generated in such plant, determined on an annual basis, should be consumed for the captive use.

Policy of Maharashtra on Captive power Plant

Industrial unit using captive genration atleast 75%

of total installed capacity

Balance 25% should be sold to any 2 third parties

in any state through wheeling

Clearance may also be granted for setting up of a

captive power plant by a company on the condition that the user company owns at least 51 per cent share of the generating company.
Such companies will be permitted for sale of

surplus electricity

THANK YOU !!!!!