Draft amendment for captive power projects released

The Ministry of Power has amended the guidelines for captive generation projects. The new guidelines cover both thermal and renewable generation stations and will be known as the draft Electricity (Amendment) Rules, 2018 coming into effect from the date of publication in the official gazette. The move comes after complaints from various states on misuse of the group captive project provision in the earlier guidelines.

As per the guidelines, a power project will be considered as captive if a minimum of 26 per cent of the project ownership lies with the captive user, and at least 51 per cent of power generated is utilised for self consumption.

For renewable energy generators, banked power that is redeemed for consumption for use by the captive users will be included to determine aggregate electricity consumption on an annual basis. The banked energy can be redeemed within the same financial year.

The captive generating station or power project will file the annual statement of generation and consumption to the appropriate state commission which will certify the claim. Discoms connected to the captive consumer will be required to collect consumption data and submit it to the discoms where generating units are connected for compilation and submission to state commission for approval. An independent power project will not be considered as a captive generating project on or after the commencement of Electricity (Amendment) Rules 2018.

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