CEA Issues Directive on Identification of Generating Station Units for Captive Use by SPVs
18 Sep 2025
The Central Electricity Authority (CEA) has released a directive to streamline the process of identifying generating station units that can be used for captive consumption by Special Purpose Vehicles (SPVs).
The directive aims to bring greater clarity in compliance with the Electricity Act provisions and ensure that generating companies and SPVs clearly demarcate units designated for captive use.
This move is expected to reduce disputes over power allocation, strengthen monitoring, and improve transparency in reporting captive power usage.
According to officials, the guideline will help in avoiding ambiguity regarding which generating units qualify under the captive structure, thereby safeguarding the rights of consumers and promoting smoother operations within the sector.
Industry experts believe this step will provide regulatory certainty for developers and investors, particularly in renewable and hybrid energy projects where SPV-based ownership structures are common.
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