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Captive Power Plants

Captive power plants contribute over one-fifth of India's total installed power capacity and have grown by an average of 1,600 MW per year for the last three years. The introduction of availability based tariffs has changed how power distribution companies operate by making them pay higher prices for power from the grid during periods of low frequency, making lower cost power from captive plants more valuable. Reforms in the power sector are ongoing, with regulatory authorities established in 24 states applying commercial principles to tariff setting and monitoring utility performance. India's non-captive power generation capacity was over 1,277 GW in 2006 with actual generation growing over 5.8% annually over the previous decade across thermal, nuclear and hydro sources.

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30 views1 page

Captive Power Plants

Captive power plants contribute over one-fifth of India's total installed power capacity and have grown by an average of 1,600 MW per year for the last three years. The introduction of availability based tariffs has changed how power distribution companies operate by making them pay higher prices for power from the grid during periods of low frequency, making lower cost power from captive plants more valuable. Reforms in the power sector are ongoing, with regulatory authorities established in 24 states applying commercial principles to tariff setting and monitoring utility performance. India's non-captive power generation capacity was over 1,277 GW in 2006 with actual generation growing over 5.8% annually over the previous decade across thermal, nuclear and hydro sources.

Uploaded by

Santosh Dolas
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Captive power plants: Captive power plants (CPPs) also make a major contribution, which is more than one-fifth

of the total installed capacity. In the last three years, captive capacity has grown at an average of 1,600 MW per year. The introduction of ABTs (Availability Based Tariffs) has changed the thinking of discoms. They have to pay huge prices as they have to source power from the grid during low frequency periods. During this time the CPP power comes in handy at a much lower tariff.

The reform process in the power sector continues. Thirteen states have unbundled SEBs into separate entities for transmission, distribution and generation. Two states have privatized distribution. Regulatory authorities have been set up in 24 states. These authorities are applying commercial principles to tariff setting, monitoring the performance of state utilities and paying attention to areas such as demand side management and grid discipline.

1.2 Generation India's power generation capacity (excluding captive plants) stood at 1,277,752 MW in Dec 2006. Actual generation has grown at a compounded annual growth rate of about 5.82 per cent in the last decade from 350,490 MUs in 1995-96 to 617,382 MUs in 2005-06. The overall generation in the country has increased (Thermal + Nuclear + Hydro) in public utilities in the country over the years is as under:

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