Centre Directs CPPs to Maximise Generation
Centre Activates Captive Power Plants Amid Record Electricity Demand: The Centre has invoked Section 11 of the Electricity Act, 2003 to address an unusual rise in electricity demand during September 2026. Around 112 coal-based captive power plants (CPPs) with installed capacity of 50 MW or more have been directed to operate at their maximum available capacity.
The direction will remain effective from 1 October to 31 December 2026. The objective is to increase electricity generation, maintain adequate supply and prepare the power system for demand that could remain elevated beyond the conventional summer peak.
Electricity Demand Reaches Record September Level
India’s peak electricity demand touched 269 GW on 10 September 2026, the highest September level recorded so far. This was close to the year’s peak of 270 GW, recorded in May.
Normally, electricity consumption moderates after the principal summer-demand period. However, unusually high demand continued through September, creating additional pressure on generation capacity and fuel availability.
Experts have associated the demand surge with persistent heat, deficient rainfall and increased irrigation requirements. Greater use of electric pumps for agriculture can raise consumption, while weather conditions associated with El Niño may contribute to temperature and rainfall irregularities.
Static GK fact: India’s electricity demand is measured through the country’s power system, while peak demand represents the highest instantaneous power requirement during a specified period.
Emergency Directions Under Section 11
Section 11 of the Electricity Act, 2003 allows the appropriate government to direct generating companies to operate according to specified requirements during extraordinary circumstances to maintain electricity supply.
Under the latest directions, eligible coal-based CPPs must utilise their maximum available generation capacity. After satisfying their own electricity requirements, plants must make their surplus electricity available through power exchanges, subject to applicable regulations.
Generators are also required to maintain adequate coal stocks so that operations can continue without interruption. They must submit weekly reports to the Central Electricity Authority (CEA) covering generation, captive consumption, surplus electricity sales, available capacity and coal inventory.
Understanding Captive Power Plants
A Captive Power Plant is a generating facility established and operated by an industrial unit or group primarily to meet its own electricity needs.
Unlike conventional utility-scale power stations, CPPs are principally designed for self-consumption rather than supplying electricity directly to the public grid. However, surplus generation can be supplied to the grid when regulatory conditions permit.
Static GK Tip: The Electricity Act, 2003 consolidated India’s legal framework for generation, transmission, distribution, trading and use of electricity and established the Central Electricity Regulatory Commission (CERC) at the central level.
Additional Government Measures
The emergency mechanism for Coastal Gujarat Power Ltd. (CGPL), Tata Power’s 4-GW imported coal-based plant, has also been extended until 31 December 2026. The plant has operated under Section 11 directions since March 2026.
Since electricity generated from imported coal or gas can carry higher costs, special tariff arrangements may be required. A committee headed by the CEA Chairman determines procurement tariffs by considering relevant costs, including fuel expenses.
Significance for Energy Security
The mobilisation of captive generation can provide additional electricity during periods of exceptionally high demand. It can also improve grid reliability, utilise existing generating capacity and support industrial, household and agricultural consumption.
The measure highlights the importance of maintaining adequate generation capacity, fuel reserves and flexible procurement mechanisms. In the longer term, accurate demand forecasting, diversified energy sources and stronger grid infrastructure remain important for reliable electricity supply.
Static Usthadian Current Affairs Table
Centre Activates Captive Power Plants Amid Record Electricity Demand:
| Fact | Detail |
| Legal Provision | Section 11 of Electricity Act, 2003 |
| CPPs Covered | Around 112 coal-based captive power plants |
| Minimum Capacity | 50 MW installed capacity |
| Direction Period | 1 October to 31 December 2026 |
| September Peak Demand | 269 GW on 10 September 2026 |
| 2026 Highest Peak | 270 GW in May 2026 |
| Surplus Electricity | To be offered through power exchanges |
| Monitoring Agency | Central Electricity Authority |
| Reporting Requirement | Weekly generation, consumption, sales, capacity and coal-stock reports |
| Main Objective | Strengthen electricity availability and grid reliability |
