| Captive Power Plants in India: Harnessing the | | | | surplus power through the power exchanges, |
| Potential | | | | depending upon the technology used claiming the |
| Captive power Plants are developed to cater the | | | | incentives under clean development mechanism |
| industrial demand in the scenario where the | | | | (CDM), earning energy efficiency certificates, |
| electricity supplied by the utilities is short in supply | | | | renewable energy certificates. Although the |
| or is of bad quality. Captive plants over the years | | | | trading of these certificates is currently not in |
| have been evolved from plants owned by single | | | | practice in India but very soon this is to be |
| promoter to group captive to the medium of | | | | adopted in Indian power markets. |
| maximizing the benefit by selling its surplus power. | | | | On the other hand the Government is also making |
| ( ) | | | | a conscious attempt to encourage captive |
| In India, captive power took on a new shape | | | | generation by earmarking the coal blocks to be |
| when the first group captive was set up by three | | | | dedicatedly used by these plants. |
| companies—Gujarat State Fertilizers and | | | | Scope of the Report |
| Chemicals Ltd, Gujarat Alkalies and Chemicals Ltd | | | | • The Report is structured into three parts:o |
| and Petrofils Cooperative Ltd, along with the | | | | Part I: CPP Scenario in India, Policies around CPP |
| Gujarat Electricity Board - Gujarat Industries | | | | development in India, managing Risks, Setting up |
| Power Co. Ltd. After meeting the needs of | | | | CPP in India ,o Part II: Economics of CPP, |
| promoter companies, the surplus was sold to the | | | | Technology and Fuel optionw\s for CPP, Financing |
| state government. Then came other large captive | | | | of CPPo Part III: Tapping CPP potential, |
| power plants of corporate groups such as | | | | Opportunities for CPP, Ranking of States (best fit |
| Vedanta, Essar, Reliance, etc which sold its surplus | | | | for CPPs), SWOT analysis, Emerging Concepts as |
| power to the state electricity boards through | | | | CPP as DDG, Group Captive and Hybrid CPP and |
| 15-25 year PPAs. The opportunities emerged | | | | future Scenario |
| after the enforcement of the Electricity Act-2003 | | | | • It presents Power generation scenario in |
| in the form of delicensing of generation, | | | | India along with Captive share in terms of fuel |
| implementation of open access and setting up of | | | | basket, size etc. |
| common trading platform, has made the captive | | | | • Complete database of major operating CPPs |
| power plants an attractive option to industries to | | | | in India ( State wise, Fuel wise, Size wise, |
| meet their in-house requirement on one hand to | | | | Developer wise etc) |
| maximise their profits from sale of the surplus | | | | • Analyzing future potential of CPPs in India |
| power from their captive plants on the other. | | | | and the role CPP is going to play in the coming |
| Apart from the mentioned benefits, other ones | | | | decade. |
| are associated with the option of selling the | | | | |