Group captive wind power, the highest-saving structure for C&I consumers in Tamil Nadu
Under the group captive model, you hold a defined equity stake in the wind generating entity, making you eligible for exemption from Cross Subsidy Surcharge and Additional Surcharge. The result is a significantly lower landed cost compared to standard open access wind power.
Talk to Our TeamWhat is group captive wind?
The group captive model for wind power follows the same framework as group captive solar, governed by the Electricity Act 2003 and the Electricity Rules 2005 as amended in 2026. Under this structure, a group of C&I consumers collectively holds at least 26% equity in the wind generating entity and collectively consumes at least 51% of the power generated annually. This qualifies the power consumed as captive consumption under the Electricity Act, making the consumers eligible for exemption from Cross Subsidy Surcharge and Additional Surcharge.
The legal requirements are:
- The group of consumers collectively holds at least 26% of the equity in the generating entity
- At least 51% of the power generated is consumed by the equity-holding consumers annually
The regulatory framework governing group captive structures has evolved significantly with the Electricity Amendment Rules 2026. The core thresholds remain in place, but compliance requirements and charge applicability have been updated. We recommend discussing the specifics with us alongside your legal and finance teams before structuring an arrangement.
Why group captive wind delivers a lower landed cost
The primary financial advantage of the group captive structure over standard third-party open access is the exemption from Cross Subsidy Surcharge and Additional Surcharge. These two charges are among the largest components of the landed cost of open access power in Tamil Nadu.
Under the group captive structure, consumers are eligible for exemption from both charges, making the landed cost of wind power significantly lower than standard open access wind. This saving is over and above the base saving from procuring wind power at a tariff below the DISCOM grid rate. For high-consumption industrial facilities in Tamil Nadu, the combined saving under group captive wind can be substantial over the tenure of a long-term PPA.
| Monthly | Annual | 10-year PPA | |
|---|---|---|---|
| Saving vs DISCOM grid rate | ₹12 lakhs | ₹1.44 crores | ₹14.4 crores |
| Additional saving from CSS/AS exemption | ₹7.5 lakhs | ₹90 lakhs | ₹9 crores |
| Total saving | ₹19.5 lakhs | ₹2.34 crores | ₹23.4 crores |
These are indicative numbers based on a facility consuming 5 lakh units per month, a DISCOM tariff of ₹8 per unit and CSS/AS of ₹1.50 per unit. Your actual saving will depend on your specific tariff slab and applicable charges.
Note: The applicability of CSS and Additional Surcharge exemptions for wind group captive consumers in Tamil Nadu is subject to prevailing TNERC regulations, annual verification of captive status, and compliance with the Electricity Rules. We recommend assessing the specific savings for your facility in consultation with us and your advisors.
Group captive wind vs open access wind
Both structures deliver meaningful savings over grid power. The key differences are:
| Open Access Wind | Group Captive Wind | |
|---|---|---|
| Equity stake in generating entity | No | Yes — defined stake |
| CSS and AS applicability | Applicable | Eligible for exemption |
| Landed cost | Lower than grid | Lower than open access wind |
| Contractual complexity | Straightforward PPA | PPA plus equity arrangement |
| Capital requirement | Zero | Defined equity investment |
| Best suited for | Consumers seeking simplicity | Consumers seeking maximum savings |
The right structure depends on your consumption profile, commercial objectives, and appetite for a slightly more structured arrangement. Both are available through our wind energy subsidiary.
How the structure works
Wind power under the group captive model is supplied through our Tamil Nadu wind energy subsidiary. Each consumer holds an equity stake in the generating entity, created as an SPV, structured in compliance with the Electricity Act requirements, and receives wind power at a landed cost that reflects the CSS and AS exemption benefit. The arrangement is structured so that:
- The equity participation is defined clearly upfront
- Power scheduling and SLDC coordination is handled by our wind energy subsidiary
- The consumer's obligations are limited to their power offtake commitment and equity holding
- Annual captive status verification is managed as part of the ongoing arrangement
Our Tamil Nadu wind portfolio of 33 MW across Aralvaimozhi, Tenkasi and Theni is currently undergoing refurbishment, with capacity coming online soon. Group captive wind arrangements are available for offtake from this portfolio.
For full details of our wind projects, Visit PPS Enviro Power Pvt Ltd.
How it works — from enquiry to power supply
Share your requirements
Tell us your facility location, connected load, and approximate monthly consumption. We require last 3 months of your electricity bills.
We present the structure
Our team explains the group captive wind arrangement, the equity stake, the PPA terms, the savings analysis in the form of a non-binding PPA term sheet, so you have a complete picture before committing to anything.
PPA and equity structuring
We proceed to structure both the Power Purchase Agreement and the equity arrangement in compliance with Electricity Act requirements.
Regulatory and grid setup
We coordinate with the SLDC and relevant DISCOMs to set up scheduling, banking, and open access arrangements as per prevailing State Energy Regulatory Commission's mandates.
Power supply begins
Wind power starts flowing to your facility at the agreed tariff, with the CSS and AS exemption benefit reflected in your landed cost.
Ready to explore group captive wind power?
Get in touch with our team, or explore our other offerings.