The Central Electricity Authority (CEA) has issued draft revised guidelines for retirement and up-rating/de-rating of generating units.
The revised guidelines shall be applicable to the conventional sources of electricity generation i.e. coal/lignite, diesel, gas based power plants and large hydroelectric plants (above 25 MW). The guidelines outline the process for the retirement of generating units by a generating company or utility, emphasising a structured approach governed by the CEA. When a decision is made by the generating company or utility to retire a generating unit, the first step involves submitting a formal request to the CEA. This request must be accompanied by a certified copy of the Board of Directors’ resolution affirming the decision. The standing committee, responsible for evaluating such proposals, scrutinises them in accordance with existing policies, rules, regulations, guidelines, and directions set by the central government. If the committee identifies any misalignment with these provisions, it may disagree with the decision and communicate its stance to the generating company, utility, or state governments.
In instances where the standing committee approves the retirement of generating units, the CEA’s installed capacity database is updated, and stakeholders are duly informed. However, this decision is contingent upon the subsequent approval of the Chairperson of the CEA. The entire proposal review process, from submission to decision, is expected to be completed within one month, provided that all necessary data and information are promptly supplied by the generating company or utility to the CEA. These guidelines aim to ensure a transparent and systematic approach to the retirement of generating units in the country. The CEA has sought comments and suggestions on the draft guidelines by March 2, 2024.