NOTIFICATION

Chapter II

Grant/Renewal of Consent for Captive Power Plants

1. Existing Consent Holders:- 

i) The existing captive power units, which have been permitted as a stand-by units shall be renewed as a stand-by units only, unless there are valid and justified reasons for change to continuous use in isolation or in parallel to Utility's supply and Commission deems it proper taking into consideration the interest of utility and consumers. 

ii) The existing captive power units which are permitted to operate in parallel with grid shall be renewed with the same facility, subject to payment of parallel operation charges and other terms & conditions as fixed by the Commission, from time to time. 

iii) All the existing CPP owners who have valid consent from the Board for specific time limit, shall apply for renewal permission at least two months before expiry of existing permission. They shall be required to furnish to the Commission the details about capacity, date of establishment alongwith copy of the letter of consent.

iv) If the consent issued by the Board does not specify any time limit, such CPP owners are required to obtain renewal consent from the Commission after expiry of 5 years from the date of earlier permission or within 3 months from the date of notification of these Regulations. CPPs installed under General Permission of Board are also required to obtain consent of the Commission. 

2.    New Captive Power Plant (CPP):- 

i) Unless exempted specifically by the Commission, Captive Power Plant owner shall have to be a Consumer of the Utility. 

ii) The grant of consent for setting up of CPP shall be considered for a total installed capacity generally not exceeding 1.5 times of the contract demand or sanctioned load as applicable. 

iii) CPPs shall normally be permitted as stand-by units i.e. when Utility supply is not available. CPPs may be permitted for continuous use, but without making parallel with Utility’s system, to the extent of their critical requirement to such industries whose production process is sensitive to voltage and frequency fluctuations (which has to be well established before the Commission), hospitals and other similar emergency services, where uninterrupted power supply is essential. 

3. Special provisions where CPP is proposed to be operated in parallel with the system.

 i) Parallel operation shall be allowed to Captive power plants of more than 1 MW capacity except those from non-conventional energy sources which can be permitted, subject to approval of the Commission, for lower than 1 MW capacity.

ii) The Captive Power Plant owners must comply with the grid discipline. The requirements of the grid discipline shall be treated as a part of the condition of the Commission's consent and any violation thereof may entail disconnection of the applicant's installation from the system to which it is connected. The generator of the applicant shall be synchronized to the Utility’s grid after it is inspected and certified by the authorized engineer of the Utility on payment of the prescribed fee. The applicant will not be entitled to get any compensation, whatsoever in the event of grid failure, interruptions, etc.