Captive coal plants asked to run at full capacity from Oct 1, Pg11

Key Highlights:

• The Centre has directed approximately 112 captive coal-fired power plants to operate at maximum capacity from October 1 to December 31.
• This directive was issued under Section 11 of the Electricity Act due to an unusual surge in electricity demand.
• India's peak power demand reached 269 gigawatts (GW) on September 10, nearing the year's highest of 270 GW recorded in May.
• The directive applies to coal-based captive power plants with a capacity of 50 megawatts and above.
• The emergency mechanism was also extended for Tata Power's Coastal Gujarat Power Ltd till December 31.

Detailed Insights:

• The government's move aims to maximize electricity availability and ensure adequate power supply during high demand.
• Captive power plants are dedicated facilities built by industrial companies primarily for their own electricity consumption.
• Plants are required to offer any surplus generation, after meeting their own captive demand, through power exchanges.
• Generators must submit weekly reports to the Central Electricity Authority detailing generation, consumption, and coal stock.
• Tata Power's Coastal Gujarat Power Ltd, a 4 GW imported coal-based plant, has been operating under this provision since March.
• The invocation of Section 11 of the Electricity Act is a mechanism used by the government in extraordinary circumstances to mandate power generation.

Key Concepts Involved:

• Captive Power Plant: A power generation facility built and operated by an industrial company for its own electricity needs.
• Section 11 of the Electricity Act: A provision allowing the government to direct generating companies to operate and maintain generating stations in extraordinary circumstances.
• Power Exchanges: Platforms where electricity is traded between buyers and sellers, facilitating the sale of surplus power.
• Central Electricity Authority (CEA): A statutory body that advises the government on policy matters and regulates technical standards in the power sector.