#solar rooftop plant installation in Bhopal

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From Sunlight to Savings: MBM India Energy’s Rooftop Solar Solutions in Madhya Pradesh

As energy demands increase and environmental concerns deepen, solar energy has emerged as a key solution for sustainable development. In Madhya Pradesh, especially in cities like Bhopal, rooftop solar plants are gaining significant attention as efficient, clean, and cost-effective sources of power. MBM India Energy is a trusted installer for solar rooftop plant installation in Bhopal and across Madhya Pradesh. In this blog, we’ll explore the benefits of rooftop solar plants, how MBM India Energy brings value to solar projects, and why investing in solar is a smart choice for residents and businesses alike.

The Rise of Rooftop Solar Plants in Madhya Pradesh

Rooftop solar plants offer several advantages, making them a popular choice in states like Madhya Pradesh, where there is ample sunlight. These systems are designed to capture solar energy and convert it into electricity, reducing dependence on conventional energy sources. For both residential and commercial users, rooftop solar plants present an opportunity to reduce electricity bills, lower carbon footprints, and contribute to a greener environment.

The state government of Madhya Pradesh has implemented various policies to promote solar energy adoption, including subsidies and incentives. This supportive environment has led to the rapid growth of rooftop solar plants across the state, and MBM India Energy is at the forefront of this movement in Bhopal.

Why Choose a Rooftop Solar Plant in Bhopal?

Opting for a rooftop solar plant in Bhopal has numerous advantages:

Reduction in Electricity Bills: By generating electricity from sunlight, you can significantly cut down on your monthly electricity expenses.

Environmentally Friendly: Solar power is clean and renewable, producing no harmful emissions. Using solar energy helps in reducing your carbon footprint and promotes a cleaner environment.

Low Maintenance: Once installed, rooftop solar plants require minimal maintenance. With regular cleaning and periodic checks, they can perform efficiently for many years.

Increased Property Value: A solar installation can increase your property’s market value. Homes and buildings equipped with solar power systems are more attractive to buyers due to the long-term savings on electricity.

MBM India Energy: Reliable Solar Rooftop Plant Installer in Bhopal

For residents and businesses in Bhopal considering a solar rooftop plant, MBM India Energy stands out as a trusted and experienced solar rooftop plant installer in Bhopal. MBM India Energy has a proven track record in delivering high-quality solar rooftop solutions tailored to meet diverse energy needs.

What Sets MBM India Energy Apart?

Expert Consultation: MBM India Energy provides detailed consultations to assess your specific energy needs, location, and budget. Their team of experts ensures that you understand the benefits and feasibility of installing a rooftop solar plant on your property.

End-to-End Service: From designing and planning to installation and maintenance, MBM India Energy handles every aspect of the solar rooftop project.

Quality Components: MBM India Energy uses only high-quality solar panels and components from trusted manufacturers, ensuring durability and optimal performance.

Customized Solutions: Whether you need a small residential setup or a large commercial installation, MBM India Energy tailors each project to meet unique requirements, maximizing energy production and cost savings.

Subsidy Assistance: Navigating government subsidies and incentives can be challenging, but MBM India Energy assists clients in understanding and applying for available financial benefits, making solar adoption even more affordable.

Solar Rooftop Plant Installation Process with MBM India Energy

The process of installing a rooftop solar plant with MBM India Energy is straightforward and efficient:

Site Assessment: The MBM India Energy team visits your location to evaluate sunlight availability, roof conditions, and structural requirements.

Design and Proposal: After the site assessment, they prepare a customized design and proposal that outlines the installation process, cost estimates, and expected energy savings.

Installation: Once the proposal is approved, the installation team begins the setup process. MBM India Energy ensures that your solar rooftop plant is installed to perfection.

Commissioning and Testing: After installation, the system undergoes thorough testing to ensure optimal performance. The team also provides training on system operation and maintenance.

Post-Installation Support: MBM India Energy offers ongoing support to monitor and maintain the system, ensuring that your solar rooftop plant continues to deliver high energy efficiency.

Making the Switch to Solar in Bhopal

The increasing cost of conventional electricity and concerns over environmental sustainability make solar energy a viable choice. For homes and businesses, installing a solar rooftop plant offers immediate and long-term benefits, from reducing electricity bills to enhancing energy independence.

From consultation and design to installation and maintenance, MBM India Energy offers the expertise and quality assurance that ensure your rooftop solar plant performs efficiently for decades.

The Future of Solar Energy with MBM India Energy

By choosing solar, you’re not only making a sound financial investment but also contributing to a sustainable future. With tailored solutions, high-quality installations, and continued support, MBM India Energy ensures that every client benefits from clean, reliable, and cost-effective energy.

If you’re ready to explore rooftop solar plant in Madhya Pradesh for your property, visit at https://mbmindiaenergy.com/solar-rooftop-plant.php. Embrace the power of the sun with MBM India Energy, your trusted partner in renewable energy in Madhya Pradesh.

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All That You Must Know About Captive Generation Plant

Written by Arun Mehta, pursuing Certificate Course in Electricity and Renewable Energy Laws offered by Lawsikho as part of his coursework.  Arun works as a Specialist in Scheduling and Forecasting at Rewa Ultra Mega Solar Limited, Bhopal. Additionally, he has a MBA degree in Power Management.

What is Captive Generation?

A Captive Generating Plant is a power plant set up by any person, cooperative society or an association of persons (including companies) for generating electricity primarily for their own use. A generation plant is considered captive only if more than 51% of its electricity generated is used by the owner(s) for their own consumption and the minimum aggregate ownership (or individual ownership as the case may be) of the captive generating plant is at least 26%. Thus, in case there are multiple owners of a captive plant (also called group captive), they should satisfy the above requirement of a minimum of 51% energy consumption from the captive and collective ownership of at least 26%.

Why Captive Generation?

Electricity is one of the major inputs for any industry and industries require a consistent and reliable supply of electricity. For some industries, the quality of electricity (in terms of harmonics, voltage, and other technical parameters) is quite important. Further, reliable and quality supply at reasonable costs is another important factor for industries. Sometimes, these requirements cannot be aptly fulfilled by the state utilities. In such cases, going for captive power is the more feasible option. Captive power reduces dependability on the grid, reduces the cost of electricity which is an input to production processes and surplus electricity can also be sold to the grid, thus bringing in multiple benefits. Captive power plants have not only benefited the owners, but also the electricity utilities by supplying extra power when there has been a deficit in the power supply.

Types of Captive Generation

Captive power plants can be classified on the basis of various parameters. A typical classification is shown in the figure below.

Different types of industries have different choices on the type of captive plant they choose to set up. For instance, heavy industries such as steel, aluminium and smelting industries which are energy intensive, generally set up coal-based power plants. Sugar industries typically setup bagasse based plants in order to optimally utilize the waste product from their factories. Diesel generators are widely used by a variety of industries, including commercial facilities such as malls, office complexes, and hospitals. Diesel generators are also used for supplying peak power and backup power. Several industries are also using cogeneration plants in which the waste heat from the boiler is effectively utilized in heating applications, one example of such industry is Arvind Mills which is a textile industry. Renewable energy, especially wind and solar are becoming the most sought-after technologies for setting up captive projects. With RE, there are other associated benefits given by Central and State Governments which have made them an attractive option for investors. For instance, several textile manufacturers setup captive wind power plants under Ministry of Textile’s Technology Upgradation Fund Scheme, wherein they were provided a capital subsidy for setting up the captive plants. For solar rooftop systems, the capital subsidy of 30% on benchmark or project cost (whichever is lower) is provided by MNRE. Further, states have their own capital subsidy for the rooftop systems. Apart from the subsidies, easier financing, concessional import duties, excise duties and tax holidays are also provided for grid-connected solar systems. Another benefit being provided to the solar rooftop systems is net-metering, in which a bidirectional energy meter is installed at the user end and the surplus energy generated can be fed into the grid resulting in further saving on costs.

Benefits of Captive Generation

For energy-intensive industries, captive power provides a cheaper option than power from discoms, since the discoms charge additional surcharges and cross-subsidies from industries. The Electricity Act of 2003 is an enabler for a captive generation. Section 9(2) gives the right to open access to the captive generator and Sections 38, 39 and 42 provide that open access cross-subsidies and surcharge are not applicable to captive projects. Thus, this can be huge savings for the industries for which power is a major cost input. Captive power is also beneficial for the grid, especially in a power deficit scenario. The government has encouraged captive power generation to address the situation of power deficit which has considerably reduced. Captive power can also be used when there is no power supply from the distribution utilities. Hence, in case of load shedding, backup diesel generators can be used to supply captive power. For captive generators based on renewable sources, other benefits are also available such as Renewable Energy Certificates, discounted wheeling and banking charges, net metering and carbon credits under the CDM Mechanism.

Key factors for consideration while setting up Captive Generation Plant

While deciding to go for setting up a captive generation plant for a factory, the following aspects should be considered:

Type of load

The type of load depends on the purpose for which the industry is being set up. Heavy load intensive industries such as steel and aluminium have larger power requirements and already have access to coal. Coal-based thermal captive plants are used for such industries. Sugar factories typically use biomass or bagasse as fuel as it is the end product of sugar manufacturing process. Cogeneration is another technology which can be used if steam is also required in the industrial processes apart from electricity. An example of such industry is the textile industry in which the waste heat from a steam boiler can be used for further industrial processes. Diesel generators are another popular option used by several industries with lesser load requirements. Diesel generators have the advantage of being able to operate without any auxiliary power supply and are very reliable as standalone power sources, however, the fuel, i.e. diesel is often expensive and polluting.

Recently, renewable sources of energy such as wind, solar and biomass are also being used as captive sources by many industries. Though the efficacy of such captive plants for energy-intensive processes may be questionable due to the variability of the power supply, many less intensive industries including food industries, textile, and commercial offices etc. can benefit from captive renewable energy. Now, even heavy power usage industries such as Delhi Metro are buying solar power. Innovative contracting or bundling of renewable power with conventional power can facilitate the supply of power from renewable sources even to energy-intensive industries.

Land requirement

Land requirement for setting up a power project varies from technology to technology, hence land availability is a critical parameter in deciding the type of captive project. Land requirements for various types of power plants are tabulated below:

Financing

Typical financing options for captive plants include self-financing, loans and financing by equipment contractors. For smaller plants, self-financing is the preferred option as depreciation on assets can be used in saving taxes. The goal for the financing of captive plants differs from the Independent Power Producers in the sense that the key objective is to lower the cost of generation and not higher rates of return9. In certain cases, the financing is done by the equipment supplier companies, who do turnkey contracts (i.e. complete commissioning of the plant) and supply power to the captive consumer at negotiated rates. Tariff determination while supplying to a licensee: If some part of power from the captive plant is being supplied to a distribution licensee then the tariff is determined by the appropriate committee as per Section 62 (a) of the Electricity Act, 2003 or tariff may be determined competitively as per Section 63 of Electricity Act, 2003 1.

Connectivity /Open Access

The captive plant owner has to apply for connectivity to the grid to discom, STU or CTU as the case may be. For connectivity, the captive owner has to comply with the rules and regulations of CTU/STU and adhere to the grid codes prescribed by the Central/State Regulatory Commissions.

Charges to be paid for open access

Open access charges are the charges payable by the open access consumers to entities such as discoms or transmission licensees for access to their network. These charges do not include the generation tariff which is payable to the generator or supplier. Industrial consumers who use the grid for consumption of power from their captive plants have to pay the open access charges. However, unlike the usual industrial consumers, who are supplied power by the distribution licensee, the captive consumers save on cross-subsidy charges and additional surcharges levied by distribution licensee. The open access charges levied on a captive consumer are as follows16:

Wheeling Charge

Charges applicable for transmitting the power through discom’s network. Typically, the open access consumer is connected to the discom network at 33 kV or below. Hence, if both captive generation plant and load are connected to the same discom network of 33 kV or below, wheeling charges would be payable by the captive consumer. The wheeling charges are determined by the State Regulatory Commission in their tariff order.

Wheeling losses

These are the technical losses of the distribution network of 33 kV or below. The losses are determined by the State Regulatory Commission and apportioned to the open access to consumers on the basis of their energy draw.

State Transmission Utility (STU) charges

The STU grid usually operates at 66 kV, 132 kV or sometimes 220 kV voltages. In case the power from the captive generator flows through the state grid, STU charges are leviable to the captive consumer. These charges are also determined by the State Regulatory Commission.

STU losses

Similar to wheeling losses, STU losses are the losses of the state grid, which are approved by the State Regulatory Commission.

PoC charges and losses

These are charges and losses incurred if the power is being transmitted through the interstate grid. Charges and losses for the national grid are determined through a point of connection method. These charges are specified on a monthly basis by CERC and the losses are specified on a weekly basis.

Banking charges

Banking charges are payable by captive consumers who use the banking facility. Typically, in banking arrangements, the surplus energy generated by a captive user is used by the distribution licensee and the same amount of energy can be used by the captive user at a later time when the energy generation from the captive plant is insufficient. The distribution licensees charge for banking facility. Many states have given waiver in banking facility for renewable energy projects.

Concerns in a captive generation

Clearances and approvals

Clearances and approvals may be required by the captive generator. The major approvals required are environmental clearance and safety clearance from the Electrical Inspector.

Environmental Clearance

Environmental compliance by captive plants is a key issue since there are no set mandates for environmental clearance. Thermal plants are quite polluting and cause air, water, and land pollution. Non-compliance in terms of emissions and effluent disposal can lead to exacerbation of environmental problems. However, clearance from the environmental agencies such as MoEF, CPCB, and SPCB can result in higher costs and delays.

Electrical Inspector approval

For the safety of men and material, Electricity Act 2003 under Section 53, provides measures for a safety inspection by Electrical Inspector under the State or Central Government. Adherence to the rules, regulations and safety measures specified by the Electrical Inspectorate must be complied with for getting clearance from the Electrical Inspector.

Fuel availability

Fuel availability could be an issue for captive plants, especially if they do not have firm contracts or captive mines for sourcing coal, or have space constraints for fuel storage9. Price hikes in domestic or imported fuel prices could also impact the cost of electricity generated by the captive plant.

Efficiency

Captive plants may have low efficiency due to smaller size9 and domestic coal. Due to such inefficiency, there could be fuel scarcity in the country if captive plants become mainstream sources of power.

Human Resources

Captive power plants may lack skilled and trained manpower for the day to day operations of the power plant9. Employing skilled personnel can add extra costs to the tariff of electricity procured from such plants.

Conclusion

While captive generation certainly has benefits, careful consideration of the various factors such as technology, fuel, nature of load and cost to benefits need to be assessed for evaluation and selection of power procurement option. Captive generation can also play a supplementary role in supplying power to the grid and alleviating power shortages in the country.

  Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

  The post All That You Must Know About Captive Generation Plant appeared first on iPleaders.

All That You Must Know About Captive Generation Plant syndicated from https://namechangersmumbai.wordpress.com/

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Sustainable Energy by MBM India Energy: Rooftop Solar Plant Solutions in Bhopal & Madhya Pradesh

As the world moves towards greener energy solutions, MBM India Energy is at the forefront, providing efficient and sustainable solar energy options. For those in Bhopal and Madhya Pradesh, the shift towards renewable energy has never been easier. With a commitment to quality, expert installation, and long-lasting performance, MBM India Energy is helping homes and businesses embrace solar power through rooftop installations. In this blog, we'll explore the benefits and process of opting for a Rooftop Solar Plant in Bhopal and Madhya Pradesh, along with why choosing MBM India Energy as your Solar Rooftop Plant Installer in Bhopal is the smartest decision.

The Growing Importance of Rooftop Solar Plants in Bhopal

With rising electricity costs and growing concerns about the environment, many homeowners and businesses in Bhopal are exploring solar energy as a practical solution. A Rooftop Solar Plant in Bhopal not only helps reduce electricity bills but also contributes to a cleaner and greener environment by minimizing carbon emissions.

Bhopal, being a city that experiences ample sunshine throughout the year, is an ideal location for solar power systems. MBM India Energy provides custom-tailored solutions for homes, offices, and commercial spaces, ensuring that you maximize the benefits of solar energy. By choosing a rooftop solar plant, residents and business owners in Bhopal can harness the abundant solar energy available, turning sunlight into an affordable and sustainable energy source.

Why Install a Rooftop Solar Plant in Madhya Pradesh?

Madhya Pradesh has emerged as a hub for renewable energy, with solar power leading the charge. The state government has been proactive in promoting the adoption of solar energy by providing various subsidies and incentives for the installation of solar power systems. Now is the ideal time to invest in a Rooftop Solar Plant in Madhya Pradesh.

At MBM India Energy, we understand the unique energy requirements of each client, whether you are a homeowner, a small business, or a large commercial enterprise. We offer end-to-end services, from designing and installing rooftop solar plants to providing ongoing maintenance and support. By investing in solar, you're not only securing energy independence but also benefiting from long-term cost savings and contributing to the global goal of reducing carbon emissions.

MBM India Energy: Your Trusted Solar Rooftop Plant Installer in Bhopal

Choosing the right installer for your rooftop solar plant is crucial to ensuring that your system operates at peak efficiency for years to come. MBM India Energy has earned a reputation as a trusted Solar Rooftop Plant Installer in Bhopal due to our expertise, high-quality products, and commitment to customer satisfaction.

Our team of professionals takes care of everything, from site evaluation to system design, installation, and maintenance. MBM India Energy’s installation process is seamless and hassle-free, ensuring that you start generating clean energy in no time.

The Process of Solar Rooftop Plant Installation in Bhopal

The installation of a Solar Rooftop Plant in Bhopal begins with a comprehensive site survey to assess your building's energy requirements and available space. Based on this, MBM India Energy designs a customized solar system that maximizes energy production and fits within your budget.

Once the design is finalized, our skilled technicians carry out the installation with precision. We ensure that all components, such as solar panels, inverters, and mounting structures, are installed safely and securely. MBM India Energy also provides complete grid integration, so you can enjoy uninterrupted solar power while staying connected to the main electricity grid for backup.

After installation, we provide detailed guidance on how to monitor your system’s performance and ensure it operates efficiently. Our after-sales service and maintenance plans are designed to keep your system in optimal condition for years, ensuring you continue to benefit from your investment in solar energy.

Benefits of Choosing MBM India Energy

Expertise and Experience: With years of experience in solar energy, MBM India Energy is well-versed in the technical and practical aspects of rooftop solar plant installations.

Customized Solutions: We provide customized solar solutions designed to meet the unique energy requirements and budgets of each client.

High-Quality Products: Our installations use premium solar panels and components that are designed for long-term durability and maximum energy output.

End-to-End Services: From system design to installation and after-sales maintenance, we provide comprehensive services to ensure your solar rooftop plant performs at its best.

Government Incentives: MBM India Energy helps you take full advantage of government subsidies and incentives, further reducing the upfront cost of installing a rooftop solar plant.

A Sustainable Future with MBM India Energy

By choosing MBM India Energy for your Solar Rooftop Plant Installation in Bhopal, you're making a smart investment in both your financial future and the environment. Our expertise, commitment to quality, and focus on customer satisfaction make us the preferred choice for rooftop solar plant installations across Madhya Pradesh.

To learn more about our solar solutions and start your journey toward energy independence, visit at https://mbmindiaenergy.com/.

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Save on Energy Bills with MBM India Energy’s Rooftop Solar Plants in Bhopal and Madhya Pradesh

As the demand for sustainable energy solutions grows, rooftop solar plants have emerged as a smart investment for both residential and commercial properties. MBM India Energy, a top solar energy provider in Bhopal and throughout Madhya Pradesh, delivers cutting-edge rooftop solar plant solutions, enabling efficient and cost-effective harnessing of solar power. With a mission to promote clean energy, MBM India Energy delivers cost-effective solar power systems that contribute to reducing energy bills and protecting the environment.

Why Choose a Rooftop Solar Plant?

Installing a rooftop solar plant in Bhopal or anywhere in Madhya Pradesh comes with several advantages. First and foremost, solar energy is a renewable resource, meaning you can generate power sustainably for years to come. It not only helps reduce your carbon footprint but also leads to significant savings on electricity bills. Furthermore, the government offers subsidies and incentives for adopting solar energy, making it an affordable solution for many households and businesses.

MBM India Energy offers tailored rooftop solar plant installations based on the energy consumption patterns of your home or business. Our systems are designed to maximize solar energy capture and efficiently convert it into usable electricity, ensuring that you get the most out of your investment.

Advantages of Rooftop Solar Plants in Madhya Pradesh

Madhya Pradesh enjoys abundant sunshine, making it a prime location for generating solar power. By installing a rooftop solar plant, homeowners and businesses can tap into this clean energy source and contribute to the state’s efforts toward renewable energy adoption.

MBM India Energy’s rooftop solar plant in Madhya Pradesh are designed to withstand local weather conditions and operate efficiently year-round. With expert engineers and high-quality materials, our installations provide long-lasting performance and minimal maintenance requirements.

Why MBM India Energy?

At MBM India Energy, we understand the unique energy needs of our customers. Our team of experienced professionals offers comprehensive solutions, including consultation, design, installation, and maintenance services for rooftop solar plants. Whether you're looking to reduce your energy costs or make an environmentally conscious choice, we ensure that our solar solutions meet the highest industry standards.

For more information on rooftop solar plant in Bhopal and across Madhya Pradesh, visit our website at https://mbmindiaenergy.com/solar-rooftop-plant.php and take a step towards a greener, more sustainable future with MBM India Energy.

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The Future of Energy: Rooftop Solar Plants in Madhya Pradesh with MBM India Energy

In an era where sustainable energy solutions are crucial for combating climate change and reducing utility costs, rooftop solar plants are becoming increasingly popular. For residents and businesses in Bhopal and across Madhya Pradesh, MBM India Energy offers cutting-edge rooftop solar plant solutions that combine efficiency, reliability, and affordability.

The Rise of Rooftop Solar Plants

Rooftop solar plants have emerged as a practical solution for generating clean energy right from the rooftops of homes and commercial buildings. They offer a way to harness the abundant sunlight in our region, converting it into electricity that can power everyday activities. This not only helps in reducing dependence on conventional energy sources but also contributes to significant savings on electricity bills.

Why Choose MBM India Energy for Your Rooftop Solar Plant?

MBM India Energy has established itself as a leading provider of rooftop solar plant in Bhopal and Madhya Pradesh, offering solutions that cater to various needs and budgets. Here’s why they are the top choice for solar energy:

1. Customized Solutions: MBM India Energy understands that every property has unique requirements. They offer customized rooftop solar plant solutions designed to maximize energy production based on your specific rooftop space and energy needs.

2. High-Quality Components: Their solar plants are built with high-quality panels and equipment to ensure durability and efficiency. This dedication to quality ensures that your solar system operates at peak performance and remains reliable for years to come.

3. Expert Installation: The company employs experienced technicians who handle the installation process with precision. Their expertise ensures that your rooftop solar plant is installed correctly, optimizing performance and longevity.

4. Cost-Effectiveness: MBM India Energy provides affordable solar solutions without compromising on quality. They offer competitive pricing and help you understand the return on investment, making solar energy accessible and financially beneficial.

5. Government Compliance: Their solar systems comply with all local regulations and standards, ensuring that your installation meets all legal requirements and benefits from any available incentives or subsidies.

Benefits of Rooftop Solar Plants

1. Energy Independence: Generate your own electricity and reduce reliance on the grid.

2. Cost Savings: Lower your electricity bills with solar power.

3. Environmental Benefits: Lower your carbon footprint and support a more sustainable planet.

4. Increased Property Value: Enhance the value of your property with a modern solar installation.

Get Started with MBM India Energy

If you’re considering a rooftop solar plant in Bhopal or anywhere in Madhya Pradesh, MBM India Energy is your trusted partner for reliable and efficient Rooftop solar plant in Madhya Pradesh. Visit https://mbmindiaenergy.com/solar-rooftop-plant.php to learn more about their offerings and take the first step towards a sustainable energy future. Harness the power of the sun and enjoy the benefits of clean, renewable energy with MBM India Energy’s expert solutions.

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All That You Must Know About Captive Generation Plant

Written by Arun Mehta, pursuing Certificate Course in Electricity and Renewable Energy Laws offered by Lawsikho as part of his coursework.  Arun works as a Specialist in Scheduling and Forecasting at Rewa Ultra Mega Solar Limited, Bhopal. Additionally, he has a MBA degree in Power Management.

What is Captive Generation?

A Captive Generating Plant is a power plant set up by any person, cooperative society or an association of persons (including companies) for generating electricity primarily for their own use. A generation plant is considered captive only if more than 51% of its electricity generated is used by the owner(s) for their own consumption and the minimum aggregate ownership (or individual ownership as the case may be) of the captive generating plant is at least 26%. Thus, in case there are multiple owners of a captive plant (also called group captive), they should satisfy the above requirement of a minimum of 51% energy consumption from the captive and collective ownership of at least 26%.

Why Captive Generation?

Electricity is one of the major inputs for any industry and industries require a consistent and reliable supply of electricity. For some industries, the quality of electricity (in terms of harmonics, voltage, and other technical parameters) is quite important. Further, reliable and quality supply at reasonable costs is another important factor for industries. Sometimes, these requirements cannot be aptly fulfilled by the state utilities. In such cases, going for captive power is the more feasible option. Captive power reduces dependability on the grid, reduces the cost of electricity which is an input to production processes and surplus electricity can also be sold to the grid, thus bringing in multiple benefits. Captive power plants have not only benefited the owners, but also the electricity utilities by supplying extra power when there has been a deficit in the power supply.

Types of Captive Generation

Captive power plants can be classified on the basis of various parameters. A typical classification is shown in the figure below.

Different types of industries have different choices on the type of captive plant they choose to set up. For instance, heavy industries such as steel, aluminium and smelting industries which are energy intensive, generally set up coal-based power plants. Sugar industries typically setup bagasse based plants in order to optimally utilize the waste product from their factories. Diesel generators are widely used by a variety of industries, including commercial facilities such as malls, office complexes, and hospitals. Diesel generators are also used for supplying peak power and backup power. Several industries are also using cogeneration plants in which the waste heat from the boiler is effectively utilized in heating applications, one example of such industry is Arvind Mills which is a textile industry. Renewable energy, especially wind and solar are becoming the most sought-after technologies for setting up captive projects. With RE, there are other associated benefits given by Central and State Governments which have made them an attractive option for investors. For instance, several textile manufacturers setup captive wind power plants under Ministry of Textile’s Technology Upgradation Fund Scheme, wherein they were provided a capital subsidy for setting up the captive plants. For solar rooftop systems, the capital subsidy of 30% on benchmark or project cost (whichever is lower) is provided by MNRE. Further, states have their own capital subsidy for the rooftop systems. Apart from the subsidies, easier financing, concessional import duties, excise duties and tax holidays are also provided for grid-connected solar systems. Another benefit being provided to the solar rooftop systems is net-metering, in which a bidirectional energy meter is installed at the user end and the surplus energy generated can be fed into the grid resulting in further saving on costs.

Benefits of Captive Generation

For energy-intensive industries, captive power provides a cheaper option than power from discoms, since the discoms charge additional surcharges and cross-subsidies from industries. The Electricity Act of 2003 is an enabler for a captive generation. Section 9(2) gives the right to open access to the captive generator and Sections 38, 39 and 42 provide that open access cross-subsidies and surcharge are not applicable to captive projects. Thus, this can be huge savings for the industries for which power is a major cost input. Captive power is also beneficial for the grid, especially in a power deficit scenario. The government has encouraged captive power generation to address the situation of power deficit which has considerably reduced. Captive power can also be used when there is no power supply from the distribution utilities. Hence, in case of load shedding, backup diesel generators can be used to supply captive power. For captive generators based on renewable sources, other benefits are also available such as Renewable Energy Certificates, discounted wheeling and banking charges, net metering and carbon credits under the CDM Mechanism.

Key factors for consideration while setting up Captive Generation Plant

While deciding to go for setting up a captive generation plant for a factory, the following aspects should be considered:

Type of load

The type of load depends on the purpose for which the industry is being set up. Heavy load intensive industries such as steel and aluminium have larger power requirements and already have access to coal. Coal-based thermal captive plants are used for such industries. Sugar factories typically use biomass or bagasse as fuel as it is the end product of sugar manufacturing process. Cogeneration is another technology which can be used if steam is also required in the industrial processes apart from electricity. An example of such industry is the textile industry in which the waste heat from a steam boiler can be used for further industrial processes. Diesel generators are another popular option used by several industries with lesser load requirements. Diesel generators have the advantage of being able to operate without any auxiliary power supply and are very reliable as standalone power sources, however, the fuel, i.e. diesel is often expensive and polluting.

Recently, renewable sources of energy such as wind, solar and biomass are also being used as captive sources by many industries. Though the efficacy of such captive plants for energy-intensive processes may be questionable due to the variability of the power supply, many less intensive industries including food industries, textile, and commercial offices etc. can benefit from captive renewable energy. Now, even heavy power usage industries such as Delhi Metro are buying solar power. Innovative contracting or bundling of renewable power with conventional power can facilitate the supply of power from renewable sources even to energy-intensive industries.

Land requirement

Land requirement for setting up a power project varies from technology to technology, hence land availability is a critical parameter in deciding the type of captive project. Land requirements for various types of power plants are tabulated below:

Financing

Typical financing options for captive plants include self-financing, loans and financing by equipment contractors. For smaller plants, self-financing is the preferred option as depreciation on assets can be used in saving taxes. The goal for the financing of captive plants differs from the Independent Power Producers in the sense that the key objective is to lower the cost of generation and not higher rates of return9. In certain cases, the financing is done by the equipment supplier companies, who do turnkey contracts (i.e. complete commissioning of the plant) and supply power to the captive consumer at negotiated rates. Tariff determination while supplying to a licensee: If some part of power from the captive plant is being supplied to a distribution licensee then the tariff is determined by the appropriate committee as per Section 62 (a) of the Electricity Act, 2003 or tariff may be determined competitively as per Section 63 of Electricity Act, 2003 1.

Connectivity /Open Access

The captive plant owner has to apply for connectivity to the grid to discom, STU or CTU as the case may be. For connectivity, the captive owner has to comply with the rules and regulations of CTU/STU and adhere to the grid codes prescribed by the Central/State Regulatory Commissions.

Charges to be paid for open access

Open access charges are the charges payable by the open access consumers to entities such as discoms or transmission licensees for access to their network. These charges do not include the generation tariff which is payable to the generator or supplier. Industrial consumers who use the grid for consumption of power from their captive plants have to pay the open access charges. However, unlike the usual industrial consumers, who are supplied power by the distribution licensee, the captive consumers save on cross-subsidy charges and additional surcharges levied by distribution licensee. The open access charges levied on a captive consumer are as follows16:

Wheeling Charge

Charges applicable for transmitting the power through discom’s network. Typically, the open access consumer is connected to the discom network at 33 kV or below. Hence, if both captive generation plant and load are connected to the same discom network of 33 kV or below, wheeling charges would be payable by the captive consumer. The wheeling charges are determined by the State Regulatory Commission in their tariff order.

Wheeling losses

These are the technical losses of the distribution network of 33 kV or below. The losses are determined by the State Regulatory Commission and apportioned to the open access to consumers on the basis of their energy draw.

State Transmission Utility (STU) charges

The STU grid usually operates at 66 kV, 132 kV or sometimes 220 kV voltages. In case the power from the captive generator flows through the state grid, STU charges are leviable to the captive consumer. These charges are also determined by the State Regulatory Commission.

STU losses

Similar to wheeling losses, STU losses are the losses of the state grid, which are approved by the State Regulatory Commission.

PoC charges and losses

These are charges and losses incurred if the power is being transmitted through the interstate grid. Charges and losses for the national grid are determined through a point of connection method. These charges are specified on a monthly basis by CERC and the losses are specified on a weekly basis.

Banking charges

Banking charges are payable by captive consumers who use the banking facility. Typically, in banking arrangements, the surplus energy generated by a captive user is used by the distribution licensee and the same amount of energy can be used by the captive user at a later time when the energy generation from the captive plant is insufficient. The distribution licensees charge for banking facility. Many states have given waiver in banking facility for renewable energy projects.

Concerns in a captive generation

Clearances and approvals

Clearances and approvals may be required by the captive generator. The major approvals required are environmental clearance and safety clearance from the Electrical Inspector.

Environmental Clearance

Environmental compliance by captive plants is a key issue since there are no set mandates for environmental clearance. Thermal plants are quite polluting and cause air, water, and land pollution. Non-compliance in terms of emissions and effluent disposal can lead to exacerbation of environmental problems. However, clearance from the environmental agencies such as MoEF, CPCB, and SPCB can result in higher costs and delays.

Electrical Inspector approval

For the safety of men and material, Electricity Act 2003 under Section 53, provides measures for a safety inspection by Electrical Inspector under the State or Central Government. Adherence to the rules, regulations and safety measures specified by the Electrical Inspectorate must be complied with for getting clearance from the Electrical Inspector.

Fuel availability

Fuel availability could be an issue for captive plants, especially if they do not have firm contracts or captive mines for sourcing coal, or have space constraints for fuel storage9. Price hikes in domestic or imported fuel prices could also impact the cost of electricity generated by the captive plant.

Efficiency

Captive plants may have low efficiency due to smaller size9 and domestic coal. Due to such inefficiency, there could be fuel scarcity in the country if captive plants become mainstream sources of power.

Human Resources

Captive power plants may lack skilled and trained manpower for the day to day operations of the power plant9. Employing skilled personnel can add extra costs to the tariff of electricity procured from such plants.

Conclusion

While captive generation certainly has benefits, careful consideration of the various factors such as technology, fuel, nature of load and cost to benefits need to be assessed for evaluation and selection of power procurement option. Captive generation can also play a supplementary role in supplying power to the grid and alleviating power shortages in the country.

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