SCOPE OF CAPTIVE POWER

PLANT
IN INDIA

By Dr. M.N. Chakravarty

INTRODUCTION
A captive power plant, also called auto
producer or embedded generation, is an Electricity
Generation facility used and managed by an industrial
or commercial energy user for their own energy
consumption. Captive power plants can operate off-
grid or they can be connected to the electric grid to
exchange excess generation.
TYPES OF CPPs IN INDIA
Basically there are these following types of
CPPs are there in India :

TYPES OF CPP IN INDIA

RENEWABLE SOURCES NON RENEWABLE SOURCES

 HISTORY OF CPPs IN INDIA
 Historically the growth of captive plants in India has been quite steep. Just after
independence in the late 1940s the country had only 544 MW of non-utility plants
generating about 1300 GWh.

 With industrialization in the early 1980s and lesser reliability of state-owned

supply, the captive capacity addition received a boost which continues even today.

 Captive power plants are owned by the industry, primarily for self-consumption.
The captive capacity as of March 2007 was 22,335 MW with a total generation of
82 GWh.

 However, this accounts for only plants in the organized sector having more than 1
MW capacity. This growing captive capacity has been mostly catering to the
captive demand of the parent industries and played very little role in catering to
the overall system demand.
HISTORY OF CPPs IN INDIA(cont.)
 HISTORY OF CPPs IN INDIA(cont.)
 Till recently, surplus power from captive plants, after meeting self-
requirements, could not be sold to third parties, a situation which
changed with the introduction of the Electricity Act 2003 that provides
transmission open access to these plants.

 The power sector in India is facing significant shortages for both

energy and peak to the tune of 10.1 per cent and 12.7 per cent
respectively in 2010, and the deficit has been growing over the years
as generation capacity addition has been unable to keep pace with the
rapidly growing demand.

 Load shedding or curtailment of power has been widely resorted to

by distribution companies to manage the power deficit. Thus, faced
with the acute power deficit situation, the paying consumers,
primarily industrial and commercial establishments, in their effort to
secure their supply have been depending largely on captive power
plants.
BASIC PHILOSOPHY OF CPPs
 The basic philosophy of Captive Power Plants is that to
make the factories/plants energy sufficient having a
“Give and Take Relationship” between the power plant
and the factory creating a “Win – Win” situation.

 To prevent the problem of power failure so, as to avoid

the production losses due to state electricity grid failure.

 To minimize/finish the Fixed cost of power consumption

by the plant and to increase the revenue by selling the
surplus power to grid thus increasing the turnover of the
plant.
 BASIC USERS OF CAPTIVE POWER
PLANTS
Captive power plants are generally used by power-intensive
industries where continuity and quality of energy supply are
crucial such as
 
1. Aluminum smelters
2. Steel plants
3. Chemical plants
4. Distilleries
5. Sugar Mills (Co-generation)
6. Cement plants
7. Pharmaceuticals plants
8. Refineries
9. Oil rigs etc.
 CONTRIBUTION OF CPPs USERS FROM DIFFERENT
CONSUMERS
INDUSTRY CAPACITY SHARE
(MW)
CEMENT 1223 9.9 %
CHEMICALS 2076 16.8 %
ELECTRONICS 59 0.5 %
ENGINEERING 2479 20.1 %
JUTE 207 1.7 % CEMENT
CHEMICALS
METALS AND 2404 19.5 %
MINERALS ELECTRONICS
ENGINEERING
MISCELLANEOUS 784 6.4 %
JUTE
PAPER 473 3.8 %
METALS AND MINERALS
SERVICES 80 0.6 %
MISCELLANEOUS
SUGAR 706 5.7 % PAPER
TEXTILES 1303 10.6 % SERVICES
 CURRENT MARKET SCENARIO FOR (CPPs) IN
INDIA
 Captive power plants (CPPs), set up by industrial and commercial
consumers, play a significant role in meeting power generation
requirements of such consumers and reduce dependence on grid
while optimizing the energy costs.

 As per India Infrastructure Research, the total installed capacity of

CPPs (of size 1 MW and above) in the country is estimated at 92,900
MW as of 2018-19, which represents 27% of the overall installed
power generation capacity which stood at 334 GW.

 India Infrastructure Research tracked captive capacity of 67,778 MW

(above 1 MW plants). Coal is the preferred fuel for captive generation
accounting for a major share of 56% in the tracked capacity.
 CURRENT MARKET SCENARIO FOR (CPPs) IN
INDIA (cont.)
 Among industries, the CPPs by the metals and minerals industry
accounted for the highest share of 39% in tracked captive capacity.

 The industry is characterized by large facilities for manufacturing and

processing metals such as Aluminum, Iron and Steel, Copper, etc. and
therefore, has immense power requirements which can be met by
CPPs.

 Renewable energy based captives Bagasse, Wind, Biomass, Solar and

small Hydro) accounted for a share of about 21 per cent in the
tracked captive capacity. The cost economics of various renewable
energy technologies have turned favorable in recent years with falling
equipment prices and high impetus on the sector by the government.
 CURRENT MARKET SCENARIO FOR (CPPs) IN
INDIA (cont.)
 Solar rooftop has become the preferred captive power
generation option for institutional and commercial consumers
and is expected to reduce the demand of diesel gensets
which were so far preferred by such establishments.
 CURRENT SITUATION OF CPPs IN INDIA

Captive plants may have adverse impacts on the finances of the

utility, such as:

 Industrial load is the main source for cross-subsidizing

revenue flows.
 Billing and collection is much more efficient for HT
consumers.
 SEBs ability to service escrow accounts for security packages
is also reduced.
 Non-optimal growth of the sector.
 Problems in grid management especially in case of states
with surplus power.
 CONCERN OF (CPPs )OWNERS IN INDIA

 Non-remunerative tariff structure for surplus power produced by

them.
 No risk sharing in case of non availability of fuel, change in variable
cost due to switching of fuel after entering into power purchase
agreement (PPA), etc.
 Inadequacies in wheeling and banking facilities
 High contract demand charges.
 High level of duties and taxes on sale of power.
 High wheeling losses assumed for power to be sold to grid by captive
or co-gen plant.
 If the captive power plant (CPP) fails, charges for back-up or standby
power from the grid are twice the normal rate for captive plants.
 No formal policy for purchase of cogenerated power (in most of the
states).
 Co-GENERATION POWER
 Cogeneration or combined heat and power (CHP) is the use of a heat
engine or power station to generate electricity and useful heat at the
same time for the purpose of utilizing it for any industrial process.

 Basically, this technology is also termed as “COMBINED HEAT AND

POWER” this is the most commonly used technology to be used for CPPs.

 The process heat is generally used for conducting out Chemical

Reactions for Process Plants like:
 Sugar Mills.
 Distilleries.
 Textiles.
 Refineries.
 Oil and Gas Plants.
 Paper Mills. etc.
 BASIC PRINCIPLE OF OPERATION OF Co-
GENERATION POWER PLANT
 The make up water for the Boiler from
the DM Plant along with the condensate
coming out from the Condenser outlet via
Condensate Extraction pump moves to the
De-aerator.

 Followed by the pumping of feed water

by BFP pumps water into the Boiler for
Sensible, Latent and Super heating.

 This superheated steam gets expanded

out in the Steam turbine coupled with a
Generator producing Electrical Power.

 While the Bleeded steam from the

turbine goes for the process heating.
 ADVANTAGES FOR Co-GENERATION CPPs
 In comparison with the electric power generation by means of fossil
fuel based thermoelectric plants, such as natural gas, the energy
generation using sugarcane bagasse has environmental advantages
due to the reduction of CO2 emissions.

 The Co-generative power plants are making less emissions as

compared to conventional coal fired projects.

 The production of the process heat/steam which is conditioned using

De-Super Heaters (DSH)/Attemperators in the boilers helps in making
power will earn them Money with minimized cost of process steam.

 The combined cycle Cogeneration technology is now a future scope of

technology in which the exhaust heat is used for generating steam
which is used for Power Generation via Steam Turbine along with
Process heat for power generation.
 ADVANTAGES FOR Co-GENERATION CPPs
 While in thermoelectric generation, part of the heat produced
is lost, in cogeneration this heat has the possibility of being
used in the production processes, increasing the overall
efficiency of the process.
INDEPENDENT POWER PRODUCERS (IPPs)
 An independent power producer (IPP) or non-utility generator (NUG) is an entity, which is not
a public utility, but which owns facilities to generate electric power for sale to utilities and end
users.

 IPPs may be privately held facilities, corporations, cooperatives such as rural solar or wind
energy producers, and non-energy industrial concerns capable of feeding excess energy into the
system.
 
 An independent water and power producer (IWPP) is similar to an IPP, but with a unified
process to also output usable treated water.

 Some IPPs companies in India are:

 Bajaj Energy.
 Adani Power.
 Reliance Power.
 Jindal Steel and Power.
 Tata Power.
 NTPC Limited.
 COMPARISION BETWEEN (IPPs) &
(CPPs)
Independent Power
Captive Power Producers
Producers
 Generate and transmit power up to a  Generate and transmit power up to a
distance 1000km and above in different distance of 200-300 km maximum
states. within the region of a state region.

 They have an objective of only of power  They supply power and process heat
generation. and steam for industrial process as well.

 These are usually not a public utility the  These are usually a public utility, the
electricity they produce may go to public electricity they produce may go to
utilities and in some cases directly to the public utilities and also to direct
consumers. consumers.

 IPPs generate power in the grid and also

 Captive Power plants generate power
supply to industrial plants followed by off the grid to supply industrial plants
state DISCOMS also to DISCOMS
TRI-GENERATION
 A plant producing electricity, heat and cold is called a Tri-
generation or Poly-generation plant. Cogeneration systems
linked to absorption chillers or adsorption chillers use waste
heat for refrigeration.
TRI-GENERATION
  Tri-generation differs from co-generation in that the waste
heat is used for both heating and cooling, typically in an
absorption refrigerator. Combined cooling, heat and power
systems can attain higher overall efficiencies than cogeneration
or traditional power plants.

 Basically, these types of plants utilizes the process heat energy

from the engines, Gas Turbines, Bio-gas Engines and this heat is
utilized in the Vapour Absorption Refrigeration Chiller machines
which refrigerates certain chemicals, alcohols Cryogenic
Refrigerants etc.

 These chillers are also used for Air conditioning purposes as

well.
DISADVANTAGES OF CPPs
 The concept of CPPs gives concern in the states which are
having surplus power by the Independent Power Producing
companies.

 There is a problem of the stability of Grid due to the

inappropriate supply of power via Solar and Wind farms.

 There is a major drawback of emission of flue gases having un

burnt carbon particles.

 Due to this absorption, when the sugarcane bagasse is burned

in the cogeneration power plants, dioxins and methyl
chloride ends up being emitted. In the case of dioxins, these
substances are considered very toxic and cancerous.
DISADVANTAGES OF CPPs (cont.)

 In the case of methyl chloride, when this substance is emitted

and reaches the stratosphere, it ends up being very harmful
for the ozone layer, since chlorine when combined with the
ozone molecule generates a catalytic reaction leading to the
breakdown of ozone links.

 After each reaction, chlorine starts a destructive cycle with

another ozone molecule. In this way, a single chlorine atom
can destroy thousands of ozone molecules. As these
molecules are being broken, they are unable to absorb
the ultraviolet rays. As a result, the UV radiation is more
intense on Earth and there is a worsening of global warming.
CONCLUSION
 Captive power plants(CPPs) are a big alternative to
conventional coal fired plants where this technology will
lead to a sustainable development of mankind.

 This technology is an eco-friendly source of energy for

the environment also helping the industries/factories to
become energy reliant.

 Every technology has its own pros and cons but the
Captive Cogeneration technology helps in providing
energy in a cost which is less than the cost of
conventional fuel like Coal, Oil and Natural Gas.
THANK YOU