CAPTIVE POWER PLANTS 

POLICY ON CAPTIVE POWER GENERATION

Approved by G.O. of Tamil Nadu in G.O.MS.No.48 Energy dated 22.04.98 and amended subseq - uently in letter no.4020/A1/98-3 dated 22.05.98 and letter No.6551/A1/98-3 dt.25.8.98.

I. DEFINITIONS :

i) CONSUMER means any person who is supplied with electric energy by Tamil Nadu Electricity Board.

ii) ACTUAL USER OF POWER means one who is not a consumer but uses power out of captive power generation.

iii) GRID means electrical network of Tamil Nadu Electricity Board.

iv) BILLING MONTH means the period between the date of meter reading in a particular month and the corresponding date of meter reading of the immediate succeeding or preceeding month as the context requires.

v) AVERAGE POWER FACTOR means the ratio of the kilowatt hour to the kilovolt amperehour consumed during the month. The average power factor shall be calculated to three decimal places and rounded off to two decimal places.

vi) OWNER OF CAPTIVE POWER means any person or group of persons explained under clause 2 below.

vii) TNEB means Tamil Nadu Electricity Board.

viii) CPG means Captive Power Generation.

2. APPLICANT ELIGIBLE FOR INSTALLING CAPTIVE POWER GENERATION :

Captive Power Plant can be installed by any of the following :

(a) A consumer of electricity

(b) A group comprising more than one consumer as joint venture

(c) An actual user of power but not a consumer

(d) A group of actual users of power, but not consumer as joint venture

(e) A group comprising of both consumers and users of power as joint venture

3. STIPULATION ON CAPACITY :

The captive power plant can be of any capacity. A part of the power generated by captive power plant shall be used by the owner himself or by the sister concern(s) of the owner of the captive power plant.

4. PERMISSION AND APPROVAL

(i) Permission for installation of Captive Power Generation is to be obtained from TNEB under Section 44 of Indian Electricity (Supply) Act 1948. For captive power generation of 25 MW and above, TNEB will accord permission under Section 44 of Indian Electricity (Supply) Act 1948 only after consulting the Central Electricity Authority as per Section 44 (2A) of Electricity (Supply) Act 1948.

(ii) Commissioning, approval shall have to be obtained from Chief Electrical Inspector to Government, if the capacity exceeds 10 KW. For Generators upto and inclusive of 10 KW capacity, approval from CEIG is not necessary.

(iii) Permission of Government of Tamil Nadu is required to synchronize and operate with Grid. Owner of CPG should apply for the above to TNEB and on TNEB’s recommendations, Government will issue permission.

(iv) All statutory clearances for setting up the CPG have to be obtained by the owner of the CPG on his own accord and TNEB will not be involved in any manner.

4(a) CONDITIONS FOR USAGE OF CAPTIVE POWER :

Energy generated from captive power generation :

(i) can be used by the user of captive power generation

(ii) can be used by the sister concern of the owner of captive power generation

(iii) Balance power after usage in items (I) and (ii) above will be purchased by TNEB.

(iv)Third party sale is not permissible.

5.GENERAL CONDITIONS FOR CAPTIVE POWER GENERATION :

A. FOR ANY CAPACITY :

(i) The energy generated from captive power plant has to be consumed by the owner himself scheme is operative only when Government declares power cut on consumption on electricity and quota to individual consumers is fixed by TNEB.

When a consumer uses power, out of his captive power generation and as a result saves part (or full) energy in units out of the quota fixed to him for a particular month, he can bank such saved energy with TNEB in his account. When the energy saved out of the quota is higher than that generated by captive power, for any particular month, then banking shall be limited to the units generated by captive power generator.

The banking period is one year from 1st October to the next 30th September. The energy banked during a particular banking period shall have to be drawn during banking period or during the succeeding year banking period. For example, the energy banked from the 1st October, 1997 to the 30th September 1998 shall have to be drawn during any part of the years from1 st October, 1997 to 30th September, 1999. The balance of energy not drawn upto 30th September, 1999 out of the energy banked during the period from1 st October, 1997 to 30th September, 1998 shall automtically gets lapsed on 30th September, 1999 to TNEB.

6.1 CONDITIONS FOR DRAWAL OF BANKED ENERGY

(i) For drawal of energy from the banked account, the demand shall not exceed the sanctioned demand.

(ii) Banked energy is allowed to be drawn by the sister concern of the owner of captive power generation on the condition (i) above.

(iii) The banking commission to the TNEB will be 2% in terms of energy.

(iv) All generators under the scheme will be metered at generator end at the cost of the owner of the CPG tested annually and sealed by TNEB.

(v) Specific approval of the Chairman / TNEB will have tobe obtained to come under this scheme.

7. POWER FEED SCHEME :

(i) The capacity of individual units shall be 2 MVA and above.

(ii) If the facitlity detailed in item No.5(A) (ii) is availed, then such CPG will not eligible to come under power feed scheme.

(iii) They shall be operated in parallel with TNEB grid interfacing at the voltages prescribed below :

Upto 5 MVA capacity :11 KV or 22 KV (according tothe Voltage System available at that area)

More than 5 MVA upto 10 MVA : 33 KV or 110 KV (according to the voltage system available in that area)

More than 10 MVA capacity 110 KV or 230 KV

(iv) The power fed into the grid can be wheeled through TNEB Grid to his own units/sister concerns situated anywhere in Tamil Nadu.

(OR)

the power fed into the grid can be sold to TNEB at the cost fixed by TNEB vide Clause 11.

(v)Wheeling shall be 15% in terms of energy wheeled in units irrespective of voltage or distance.

(vi)The cost of interfacing lines, switchgear, metering and protection arrangement shall have to be borne by the owner of captive power generators, but the work will be executed by TNEB on Deposit contribution Work basis.

(vii) When the owner of the captive power generator happens to be a consumer and when the power fed to the TNEB grid is less than 2 MVA, dedicated line from the location of the captive power generator to near by TNEB substation will not be required. The service line itself will cater to the need to export the power to the TNEB grid.

(viii) When the owner of the captive power generator happens to be a consumer and when the power fed to the TNEB Grid is more than 2 MVA, then a dedicated feeder to a nearby substation will be required. If already the consumer is availing himself of supply through a dedicated feeder and if the capacity of the feeder is adequate to carry the quantum of export of power, then the sance feeder can be used for export of power and no additional installation is required.

(ix) In case the dedicated feeder is not adequate to carry the power exported, then the existing dedicated feeder has to be strengthened or a new line has to to be erected.

(x) For a non-consumer (user) the new interfacing line of appropriate capacity and voltage shall be at his cost and will be executed by TNEB.