The Hindu Business Line : Captive power starts flowing into grid

With the captive units in the country accounting for a cumulative power generation capacity of about 20,000 MW, or close to NTPC's total installed capacity, players such as PTC are aggressively trying to tap surplus power available with such players so that it can be supplied to distribution utilities requiring power.

PTC had, earlier, invited expressions of interest from captive power plants and industry associations for offtake of surplus capacity.

The company is in talks with a number of players which have responded positively to the offer, industry players said.

With the Electricity Act 2003 easing the governing sale of power from captive sets to the grid, many more players are expected to sell surplus power to traders such as PTC and other intermediaries, who can then supply the power to distribution utilities.

PTC plans to enter into a memorandum of understanding (MoU) with the prospective customers for a period of around three years or more for trading of surplus power.

"Constraints such as the lack of access to grid infrastructure and the scattered nature of captive units notwithstanding, the possibility of evacuating power from such units is immense. We are in talks with a number of captive players for sourcing power, wherever availability of grid infrastructure and economies of scale permit such a move," a PTC executive said.

In fact, industry is also gearing up for the opportunity by setting up larger than required captive sets, in order to exploit the possibility of selling surplus power on a commercial basis.

"Industry players are increasingly setting up larger captive units, since the option of selling excess power commercially is readily available," said an executive with Bharat Heavy Electricals Ltd, one of the country's largest captive equipment manufacturers.

While the Government is increasing incentives to tap captive power as a means of tiding over power demand in the short-to-medium term, the Central Electricity Authority has drafted a comprehensive policy for purchase of power and wheeling of surplus power from captive sets.

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