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    CAPTIVE POWERPOLICY

    Prepared by-Nitesh Gupta

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    InceptionSection 44 of the Electricity(Supply) Act, 1948 gave birth toCaptive Generation.

    Any person (other than central govt. gencos ) toestablish or to acquire a new generating station orto extend any major unit of plant has to takepermission from SEB

    If capacity > 25MW then SEB required to consultCEA

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    Definition given under IEA 2003

    These restrictions & control on captive generation inSupply Act, 1948 is removed under Electricity Act2003, Section 2

    (8) Captive generating plant means a power plantset up by any person to generate electricity primarilyfor his own use and includes a power plant set up by

    any co-operative society or association of persons forgenerating electricity primarily for use of members ofsuch cooperative society or association.

    Captive generation is generation primarily

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    Section 9. (Captive generation):(1)A person may construct, maintain or operate a captive

    generating plant and dedicated transmission lines primarily forhis own use, and he can sell the surplus power available to the

    grid.

    Owner can construct dedicated transmission line for carryingelectricity from captive plant to the destination.

    No requirement of license for supplying power to a licensee andopen access consumer

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    Section 9. (Captive generation):(2)Electricity generated from captive plant can be transmit throughthe grid to the destination.

    He should have the right to open access in the interveningtransmission facilities, subject to availability of transmission capacity.

    Availability of Transmission facility determined by the central/ stateTransmission Utility

    Dispute if any on the issue shall be studied and settled upon by theAppropriate Commission.

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    National electricity policyCaptive power plant facilitate the creation of employmentopportunities through speedy and efficient growth ofindustry.

    Captive power plant help in meeting the demand forpower by harnessing the surplus capacity.

    Grid inter-connections for captive generators shall befacilitated as per section 30 of the Act(Transmissionwithin a State).

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    National Tariff PolicyDistribution licensees can buy power fromCaptive Plant using the guidelines issuedby the Central Government under section

    63 of the Act.

    Captive generators can be allowed toinject into the grid under the AvailabilityBased Tariff (ABT) mechanism.

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    Electricity Rules 2005Not < than 26 % of the ownership should be

    held by the captive user and

    Not < than 51 % of the aggregate electricitygenerated in such plant, determined on anannual basis, should be consumed for the

    captive use.

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    Policy of Maharashtra on Captive

    power PlantIndustrial unit using captive genration atleast 75%

    of total installed capacity

    Balance 25% should be sold to any 2 third partiesin any state through wheeling

    Clearance may also be granted for setting up of acaptive power plant by a company on the condition

    that the user company owns at least 51 per centshare of the generating company.

    Such companies will be permitted for sale ofsurplus electricity

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