Can a section 8 company be formed for power generation?

The licensing of Section 8 company is at discretion of the Government , the license would be granted provided after satisfaction of Section 8(a) , (b) & (c)

Yes, Section 8 Company can be formed for Power generation if it satisfies the Condition under section 8 (1) (a) which states the object of promotion of commerce, art, science, sports education,research, social welfare, charity, protection of environment and any other object.