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Govt pins hopes on surplus power from captive units

Our Bureau

New Delhi , March 21

The Government expects around 5,000-6,000 MW of surplus power from captive units that can be fed into the grid to mitigate peaking shortages over the next five years or so.

Speaking at a workshop on captive power, the Power Secretary, Mr R. V. Shahi, said the total installed capacity of captive power plants in the country was over 20,000 MW and a large portion of this could be fed into the grid.

Action plan

He said the Government as well as Regulatory Commissions have been working to facilitate expansion of captive capacity and connectivity of their surplus power to the grid and that an action plan has also been evolved in this regard.

He said that after the enactment of Electricity Act 2003, there is a renewed interest in captive generation. The new Act provides for open access in a non-discriminatory manner.

"During the Tenth Plan alone, about 3,000 MW of surplus captive capacity would be added to the grid," Mr Shahi said.

Criteria relaxed

The Government has also relaxed the criteria for terming a power plant as captive, he said, adding now industrial units can set up such projects with only 26 per cent equity and consume 51 per cent of power generated.

The remaining electricity could be sold to other consumers, he said.

However, Mr V. Subramanyam, Secretary in the Ministry of Non-Conventional Energy Sources, said even this limit should be relaxed in case of co-generation units to encourage industries, such as sugar and paper mills, to set up power plants.

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