CHENNAI: The Centre has directed coal-based captive power plants with an installed capacity of 50 MW and above to run at their maximum available capacity and sell surplus electricity through power exchanges, as it braces for higher power demand in the coming months.
The direction, issued by the Union Ministry of Power under Section 11 of the Electricity Act, 2003, will be in force from October 1 to December 31.
Six captive power plants located in Tamil Nadu figure in the list of 112 plants listed by the ministry. They include DCW Ltd, Sahupuram in Thoothukudi (108 MW), Tamil Nadu Newsprint and Papers Ltd (TNPL), Unit 1, Karur (103.62 MW), TNPL, Mundipati in Trichy district (30 MW), Ramco Cements, Govindapuram Works (60 MW), JSW Steel Ltd, Salem Works (97 MW), and Ultratech Cement Ltd (India Cements), Sankarnagar unit (48 MW).
The six plants have a combined installed capacity of 446.62 MW. Of these, five plants with a combined capacity of 416.62 MW have an installed capacity of 50 MW or more and fall within the threshold specified in the Centre's directive.
The ministry has asked the eligible plants to maximise generation after meeting their own captive power requirements. Any surplus electricity available is to be offered through power exchanges in accordance with applicable regulations.
The plants have also been asked to maintain adequate coal stocks to ensure fuel availability and enable maximum generation. They will have to submit weekly reports to the Central Electricity Authority detailing generation, captive consumption, sale of power through exchanges or other permitted avenues, available capacity and coal stocks.
The ministry said the directions were aimed at optimising electricity generation from all available sources, including captive generating stations, to ensure adequate power availability amid the prevailing demand-supply situation and expected rise in demand.