Section 2(8) of the Electricity Act, 2003 defines a captive generating plant as “ a power plant set up by any person to generate electricity primarily for his own use and includes a power plant set up by any co-operative society or association of persons for generating electricity for use of members of such co-operative society or association ”. The captive power generators can use the electricity for themselves and can also contribute to the power grid. Traditionally, captive power plants are used by energy-intensive industries/businesses such as steel plants and aluminum smelters to meet their own energy requirements and provide an uninterrupted power supply. However, since the advancements in renewable energy production technology sources such as wind and solar energy and the availability of windmills and mobile/rooftop solar panels, even individuals or cooperative societies fall under the ambit of captive power generators. The captive power policy in India came into existence when