The MoP has issued the draft Electricity (Amendment) Rules, 2018. The draft amendments will apply to all power projects seeking “captive” status. As per the proposed amendments, the aggregate electricity generated by a captive power plant (CPP) will be computed as the difference between the total electricity generated and the auxiliary consumption. In case of a hydro CPP, if free power is supplied to the state government, it will be excluded while calculating the aggregate electricity generated by the plant. Further, in the case of renewable CPPs, the banking of power would be included for determining the aggregate electricity consumption. Another important amendment is that a generating station set up as an independent power project would not be eligible to seek CPP status on, or after the commencement of the amended rules, except in certain special cases such as lenders taking over, lack of a power purchase agreement (PPA), or upon the recommendation by discoms or the state electricity regulatory commission.
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