Captive power plant of Bokaro Steel Plant is co-gen : Jharkhand ERC

In an order dated 24th March 2014, state electricity regulator of Jharkhand (JSERC) is of the view that the captive power plant of Bokaro Steel Plant (a unit of Steel Authority of India) can be regarded as a co-generation plant. This means that power consumption from CPP of BSL will qualify towards fulfillment of RPO set under relevant regulations of JSERC.

BSL had prayed JSERC to

1. declare its CPP of 302 MW as co-generation power plant,

2. exempt BSL from applicability of RPO and

3. waive the RPO applicable on consumption of power from its CPP during FY11, FY12 and FY13.

CPP of BSL fulfills the definition of CPP as BSL has 50% equity in the plant and consumes 100 % of power generated.

JSERC also considered APTEL’s judgement in the case of MERC vs Century Rayon, where in it was declared that fastening of RPO on  would defeat  the objective of section 86 (1) (e) of the Indian Electricity Act.

JSERC has RPO targets defined till FY16. It has a total of 4% RPO (1% solar & 3% non-solar) for all three years FY14, FY15 & FY16.

BSL also is a distribution licensee in Jharkhand. As per data furnished in the order total RPO applicable on BSL for consumption of captive power comes around – 64.8 MW of non-solar and 17 MW of solar RPO.

The order can be accessed here.