Six months ago, in an attempt to augment power generation, the Central Electricity Regulatory Commission (CERC) amended its rules (Section 9) allowing any captive power plant (using 25 percent of its own power) to sell electricity through an open access system, without requiring a separate licence. Earlier, a captive power generation unit was defined as one which consumed 75 percent of the power it produced and it could sell any residual of the power it generated (subject to the ceiling of 25 percent) to the grid only after obtaining a special clearance from the government.
(This story appears in the 06 November, 2009 issue of Forbes India. To visit our Archives, click here.)
Dear R.N Bhaskar, Useful article indeed. Recently I haven't read this type of infromative article on captive power
on Jul 5, 2010A couple of points to note. First, it is debatable whether the recycling and scope economies enjoyed by captive power plants are of a magnitude that can match the impact of scale economies on the cost of conventional power generation (albeit, 'cost', even 'marginal cost', is a fuzzy concept at captive plants). Second, the relaxation of restrictions on production and transmission of captive power (and the plans to expand captive capacity) is likely to enhance competition on the grid already supplied with wind power. Such competition bodes well for large power consumers who would otherwise be at risk of being fleeced with peak spot market prices. Apparently, the CERC has acted pre-emptively in opening up the powe grid to captive power production. All's well until gas prices are 'deemed' fixed at the magical '4.2' !!!
on Oct 30, 2009The changes in the ACT are not in a single line. They come as various modifications at different times. Some of the major policy decisions on captive power are listed below:<br /> 12th, February, 2005<br /> The Gazette of India, EXTRAORDINARY PART I - Section 1, PUBLISHED BY AUTHORITY, Ministry of Power<br /> <br /> Ins. by Act 26 of 2007, Sec. 3 (w.e.f.15th June 2007).<br /> > supply of electricity generated from a captive generating plant to any licencee in accordance with the provisions of this Act and the rules and regulations made > thereunder and to any consumer subject to the regulations made under subsection (2) of section 42.]<br /> <br /> 17 July 2008<br /> L-7/140(155)/CERC-2008 - Arranging tr5ansmission for New Generating Stations, Captive Power Plants and Buyers of Electricity.<br /> <br /> 23.2.2009<br /> Uniform UI cap needs to be imposed on all types of generation inclusive of captive and non-conventional energy sources.<br /> <br /> 12th August, 2009<br /> CENTRAL ELECTRICITY REGULATORY COMMISSION<br /> NEW DELHI<br /> No.L-7/143/158/2008-CERC<br /> <br />
on Oct 27, 2009Can i get the the date of amendment in CERC rules (Section 9) which you have quoted in first para of this article.
on Oct 27, 2009