Why in news
- The Union Ministry of Power has invoked Section 11 of the Electricity Act, 2003, directing all captive coal-based power plants with capacity above 50 MW to generate electricity at maximum availability.
Key terms
Section 11 Directive
Statutory emergency power allowing government to mandate operation of power plants during electricity shortages.
Captive Power Plant
A power station established by an entity to generate electricity primarily for its own industrial use.
Peak Demand
The period of maximum electricity consumption across the power grid requiring full dispatchable generation.
Merit Order Despatch
Ranking of power generation sources based on variable cost to ensure least-cost electricity supply.
What is Section 11 of the Electricity Act, 2003?
- Section 11 empowers the appropriate government to direct a generating company to operate and maintain any generating station in extraordinary circumstances.
- Extraordinary circumstances are defined as natural calamities, threats to security of the State or public order, or events disrupting electricity supply.
Key provisions and current directions
- Before: Captive generating plants primarily operated to meet the internal electricity needs of parent industrial units, selling only surplus power on power exchanges.
- After: Under the Section 11 directive, captive plants exceeding 50 MW capacity must operate at full output and feed excess power directly into the national grid.
- The Electricity Regulatory Commission determines the tariff compensations and operational cost offsets for generating units operating under emergency mandates.
Why it matters
- Provides an immediate statutory mechanism to mitigate peak grid deficits without waiting for new thermal capacity additions.
- Balances industrial energy security with national grid stability during seasonal demand surges.
Prelims facts
- Section 11 of Electricity Act, 2003 can be invoked in cases of public interest, natural calamity, or energy crises.
- Captive plants are established primarily for personal industrial consumption under Section 9 of the Act.
Mains discussion
- Examine the statutory mechanisms available under the Electricity Act, 2003 to handle seasonal grid deficits and demand spikes.
Source: Economic Times
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