Group Captive

• Captive generating plant was defined as one in which captive consumers (a) hold a minimum of 26% of the ownership (b) consume not less than 51% of the aggregate generation computed on an annual basis
• If the generating plant was set up by a registered cooperative society the consumers collectively have to consume not less than 51% of the aggregate generation implying that in case of any other form of entity, this obligation is to be in proportion to the ownership rights. Section 9 of the Electricity act 2003:-Group captive power plant, unlike an individual captive power plant, is a unique structure where a developer sets up a power plant for collective use of many industrial consumers who should have 26 per cent equity in the plant and must consume 51 per cent of the power produced.

Sec 38,39 and 40 of the Act made it mandatory for the Central Transmission Utility (CTU) and the State Transmission Utility (STU) to provide non discriminatory Open Access to the captive generator for the use of transmission system for his/their own use without any surcharge.

Terms for Thermal / Co-Gen / Biomass/ Wind / Solar:

• Quantum of Supply: 1MW for 24 hours (RTC).
• Drawal Voltage: 11/22/33/110/230 KV.
• Period of Supply: One year/ Three Year / Ten Year
• Price: Rs. **/- per unit. for 1MW
• Share Investment: Share Investment of Rs. ______ Lakhs to be paid for 1 MW RTC.
• Payment Security: (Revolving LC) or one month consumption charges have to be paid before starting the transaction as security deposit.
• Payment mode: 100% Advance payment to be made through RTGS once in 15 days.
• Billing & Payment: Preform Invoice will be sent in advance for payment. Invoice for the entire month supply will be provided at the end of the billing cycle.
• Approval & Billing: Approvals will be issued by TANTRANSCO Billing Cycle from 00:00 hrs of 28th of a month to24:00 hrs of 27th of the next month.
• Offer Validity: Our Offer is Valid for 7 days from the date of offer letter.

Group Captive Power Purchase in India

Although introduced in 2005, this purchase seems to be catching the trend off late in India. Understand this group captive power purchase in depth with pros and cons below. This Group Captive policy is a boon for the industrial consumer. Industrial consumer segment is growing at a fast pace, which doesn't want to depend on state utilities for its power needs because they are expensive and unreliable. The concept is group captive power plants gave an alternative route to the industries.

What is a Group Captive Power Purchase?

A group captive purchase is where someone develops a power plant for collective usage of many commercial and industrial consumers. The group of consumers should have at least 26% of the equity in the power plant and has to consume at least 51% of the power produced. The term "captive power purchase" was introduced in the Electricity Rule, 1995.

What are the advantages of Group Captive Purchase?

• Cheaper price: This is the most important factor and the reason why it all works. Where the Consumer gets power at a cost much less than EB tariff.
• Power Cuts: In case of a power cut, industrial consumers face heavy productivity losses leading to financial losses. Group captive purchase, circumvents this frustrating problem entirely.
• State utility: The consumers in the group captive Purchase no longer need to worry about bureaucratic utilities.

How will the Group Captive Power Purchase work?

Group captive power plant, unlike an individual captive power plant, is a unique structure where a developer sets up a power plant for collective use of many industrial consumers who should have 26 per cent equity in the plant and must consume 51 per cent of the power produced.

Imagine Company A along with company B and company C decide to bring down their electricity costs. Collectively they make a power plant with 26% equity and decide to use about 51% of energy produced. Then they decide to sell the remaining 49% power to Company X, Y and Z. This makes the whole group part of the group captive power purchase.

Thermal power

A Thermal Power Station is a power plant in which heat energy is converted to electric power. In most of the places in the world the turbine is steam-driven. Water is heated, turns into steam and spins a steam turbine which drives an electrical generator. After it passes through the turbine, the steam is condensed in a condenser and recycled to where it was heated; The greatest variation in the design of thermal power stations is due to the different heat sources, fossil fuel dominates here, although nuclear heat energy and solar heat energy are also used. Some prefer to use the term energy center because such facilities convert forms of heat energy into electrical energy. Certain thermal power plants also are designed to produce heat energy for industrial purposes of district heating, or desalination of water, in addition to generating electrical power.

Biomass

Biomass is organic material of recent origin that can be used as a source of energy. It generally includes crops and other plants, as well as agricultural, forest, sawdust and agro-industrial waste. Electricity produced as a result of utilizing surplus biomass sources into energy is considered biomass power.

Generating power through the use of biomass represents the cost-effective and cleanest way to provide renewable electricity in biomass potential regions with high levels of biomass resources and its processing activity.

Electricity produced from biomass is considered to be carbon neutral and therefore helps to combat global warming. The CO2 that the facility will release would have been produced as the plants and trees naturally decomposed in the forest without the benefit of electricity production.

Wind Power

Winds are caused by the uneven heating of the atmosphere by the sun, the irregularities of the earth's surface, and rotation of the earth. Wind flow patterns are modified by the earth's terrain, bodies of water, and vegetative cover. This wind flow, or motion energy, when "harvested" by modern wind turbines, can be used to generate electricity.

The terms "wind energy" or "wind power" describe the process by which the wind is used to generate mechanical power or electricity. Wind turbines convert the kinetic energy in the wind into mechanical power. Generator can convert this mechanical power into electricity energy.

Wind energy is a free, renewable resource, so no matter how much is used today, there will still be the same supply in the future. Wind energy is also a source of clean, non-polluting, electricity. Unlike conventional power plants, wind plants emit no air pollutants.

Solar Power

Solar power is the use of the sun’s energy either directly heat or through the use of photovoltaic cells in solar panels and transparent photovoltaic glass to generate electricity.

Standard photovoltaic solar panels are the most efficient application of photo voltaics. However, photovoltaic glass allows generation from surfaces like building windows that were previously incapable of anything but passive solar energy and also enables other options, like color choices. Other technologies include low-tech solar heaters created from recycled cans that provide an inexpensive source of heat.