{"id":126418,"date":"2026-09-27T10:50:11","date_gmt":"2026-09-27T05:20:11","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=126418"},"modified":"2026-09-27T13:10:51","modified_gmt":"2026-09-27T07:40:51","slug":"captive-power-plants-cpps","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/captive-power-plants-cpps\/","title":{"rendered":"Captive Power Plants (CPPs) &#8211; Maximising Power Generation Amid Unusual Demand Surge"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><b>Captive Power Plants (CPPs) Latest News<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amid an unusual surge in electricity demand in September 2026, the Centre has invoked emergency provisions under<\/span><b> Section 11 <\/b><span style=\"font-weight: 400;\">of the Electricity Act 2003.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It directs around 112 coal-based captive power plants (<\/span><b>CPPs<\/b><span style=\"font-weight: 400;\">) to operate at maximum available capacity from October 1 to December 31, 2026.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The move aims to <\/span><b>maximise electricity generation<\/b><span style=\"font-weight: 400;\">, ensure adequate power availability and address the possibility of sustained high demand beyond the usual summer peak.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Electricity Demand<\/b><\/h2>\n<ul>\n<li aria-level=\"1\"><b>Unprecedented surge:<\/b>\n<ul>\n<li><b>Record peak demand<\/b><span style=\"font-weight: 400;\">: On September 10, 2026, India&#8217;s peak electricity demand reached <\/span><b>269 GW<\/b><span style=\"font-weight: 400;\">, the highest ever recorded for September.<\/span><\/li>\n<li><b>Near-summer levels<\/b><span style=\"font-weight: 400;\">: The demand was close to the year&#8217;s highest peak of 270 GW, recorded in May 2026.<\/span><\/li>\n<li><b>Unusual trend<\/b><span style=\"font-weight: 400;\">: Electricity demand generally declines after the summer months (April\u2013July). However, demand has remained exceptionally high this September.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Factors behind the demand surge:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">According to power sector experts, the unusually high electricity demand is attributable to &#8211;<\/span>\n<ul>\n<li><b>Persistent heat:<\/b><span style=\"font-weight: 400;\"> Continued high temperatures have increased electricity consumption for cooling.<\/span><\/li>\n<li><b>Deficient rainfall:<\/b><span style=\"font-weight: 400;\"> Inadequate rainfall has contributed to higher demand for electricity.<\/span><\/li>\n<li><b>Increased irrigation demand: <\/b><span style=\"font-weight: 400;\">Greater dependence on electric pumps for irrigation has added to the demand.<\/span><\/li>\n<li><b>El Ni\u00f1o: <\/b><span style=\"font-weight: 400;\">Weather conditions associated with El Ni\u00f1o have potentially intensified heat and rainfall irregularities.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: 400;\">September has recorded the year&#8217;s highest peak demand only twice in recent years\u2014in 2020\u201321 and 2023\u201324.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Emergency Directions to CPPs<\/b><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">Section 11 of the Electricity Act empowers the government to require generating companies to operate in <\/span><b>extraordinary circumstances<\/b><span style=\"font-weight: 400;\"> to ensure electricity supply.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The directive covers all coal-based captive power plants with an installed capacity of <\/span><b>50 MW or more.<\/b><\/li>\n<li><b>Key provisions:<\/b>\n<ul>\n<li><b>Maximum generation<\/b><span style=\"font-weight: 400;\">: Captive power plants must operate at the maximum level of their available capacity.<\/span><\/li>\n<li><b>Surplus power supply<\/b><span style=\"font-weight: 400;\">: After meeting their own electricity requirements, plants must offer surplus electricity through power exchanges, in accordance with applicable regulations.<\/span><\/li>\n<li><b>Adequate coal stocks<\/b><span style=\"font-weight: 400;\">: Generators must maintain sufficient coal reserves to ensure uninterrupted operations and maximise electricity generation.<\/span><\/li>\n<li><b>Weekly reporting<\/b><span style=\"font-weight: 400;\">: Plants must submit weekly reports to the Central Electricity Authority (CEA), detailing electricity generation, captive consumption, surplus power sales, available capacity and coal stocks.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>What are CPPs?<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">These are electricity-generation facilities established and <\/span><b>operated by industrial enterprises <\/b><span style=\"font-weight: 400;\">or groups of industries primarily to meet their <\/span><b>own <\/b><span style=\"font-weight: 400;\">electricity <\/span><b>requirements<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Unlike conventional power plants, their primary purpose is not to supply electricity to the public grid.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">However, they can contribute to grid stability by supplying surplus electricity when required.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Other Measures<\/b><\/h2>\n<ul>\n<li aria-level=\"1\"><b>Extension of emergency provisions:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The Ministry of Power has separately extended the emergency mechanism for Coastal Gujarat Power Ltd (CGPL), <\/span><b>Tata Power&#8217;s <\/b><span style=\"font-weight: 400;\">4-GW imported coal-based power plant, until December 31, 2026.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The plant has been operating under Section 11 directions since March 2026.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Before March, it had remained largely idle for nearly six months because of high imported coal prices and the absence of a viable power purchase arrangement.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The extension was limited to Tata Power&#8217;s plant because other imported coal-based power plants were operational and were not facing similar difficulties.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Tariff determination:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Invoking Section 11 for high-cost power plants can create financial challenges because imported coal and gas-based electricity are often more expensive than conventional domestic coal-based power.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">To address this, a committee chaired by the Chairman of the Central Electricity Authority (CEA) determines the tariff for electricity procured from such plants.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The committee considers relevant input costs, including fuel expenses, while determining the procurement tariff.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Tariff-related measures have been used to protect consumers from sudden increases in electricity prices.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Significance of the Government\u2019s Intervention<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ensuring energy security<\/b><span style=\"font-weight: 400;\">: Mobilising captive power generation can help bridge the gap between electricity demand and available supply.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improving grid reliability<\/b><span style=\"font-weight: 400;\">: Additional electricity from captive plants can strengthen the availability of power during periods of unusually high demand.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Efficient utilisation of generating capacity<\/b><span style=\"font-weight: 400;\">: Requiring plants to operate at maximum available capacity can help utilise existing infrastructure.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Supporting industrial and agricultural demand<\/b><span style=\"font-weight: 400;\">: Increased electricity availability can help meet the requirements of industries, households and irrigation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reducing supply disruptions<\/b><span style=\"font-weight: 400;\">: Mobilising surplus power through exchanges can provide additional electricity to the grid when required.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Conclusion<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Centre&#8217;s decision to invoke Section 11 reflects the challenges posed by increasingly unpredictable electricity demand.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The unusual September demand surge highlights the importance of maintaining adequate generation capacity, fuel reserves and flexible power procurement mechanisms.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the longer term, improving demand forecasting, diversifying energy sources and <\/span><b>strengthening grid infrastructure<\/b><span style=\"font-weight: 400;\"> will be essential for ensuring reliable and affordable electricity supply.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Source: <\/b><a href=\"https:\/\/indianexpress.com\/article\/business\/centre-emergency-power-mechanism-captive-plants-full-capacity-10895148\/\" target=\"_blank\" rel=\"nofollow noopener\"><b>IE<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Centre invoked Section 11 of the Electricity Act, 2003, directing 112 coal-based captive power plants (CPPs) to operate at maximum capacity.<\/p>\n","protected":false},"author":19,"featured_media":126446,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[10515,60,22,59],"class_list":["post-126418","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-mains-current-affairs","tag-captive-power-plants-cpps","tag-mains-articles","tag-upsc-current-affairs","tag-upsc-mains-current-affairs","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/126418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=126418"}],"version-history":[{"count":5,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/126418\/revisions"}],"predecessor-version":[{"id":126448,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/126418\/revisions\/126448"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/126446"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=126418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=126418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=126418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}