Group Captive Power purchase mechanism is the one in which a person or group or persons set up a power plant for purchase of power from that plant for their own consumption. Such captive user(s) shall hold at least 26% of the ownership in the generating plant and consume not less than 51% of the electricity generated, on an annual basis, in proportion to their shares in ownership of the power plant within a variation not exceeding 10%.
Advantages
- Tariff determined for group captive will be constant for the term of PPA
- Cross subsidy & additional surcharge would not be applicable
- No impact of regulatory changes on this transaction as compared to short term
- TPTCL & generator will support and facilitate in getting MTOA/LTOA approval for entire period of the agreement
- Consumers in the group captive purchase need not worry about bureaucratic utilities
- Financial support infusing equity amount (60 Lakhs per MW) to SPV
- Equity investment is refundable at the end of transaction
GCPP Structure
- Each captive user retain its own individual identity as consumer of power
- GCPP feasible with only one captive user provided it complies with the ownership and consumption requirements specified
- Association of persons (in various forms like SPVs) formed with more than one captive user for the generating plant