Captive Power Plant Market Size, Share & Industry Analysis, By Fuel (Diesel, Gas, Coal, Renewables), By Industry (Cement, Steel, Metals & Minerals, Petrochemicals, Sugar, Others)and Regional Forecast, 2024-2032

The electricity is a basic need for the economic growth of the region. An uninterrupted and reliable power supply is essential for setting up industries, factories, and office spaces. Major barriers in developing industrial areas include land acquisition and power supply. Lack of grid infrastructure obstructing the growth of the industrial sector. Captive power is a facility dedicated to providing a localized source of power to an energy user.

These are typically employed in large industrial facilities or offices. The number of industries is relying on their own generation instead of grid supply due to non-availability of adequate grid supply, poor quality and reliable grid supply, and high tariffs. In many industries such as cement, textiles, steel, metals & minerals, etc.

started setting up captive power plant to protect themselves against unreliable grid supply. Captive power plant proved to be more reliable and cheaper than power provided by the state electricity board. Therefore, in the long run captive power plant is essentially needed for many industrial applications.

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Captive power plant market is segmented on the basis of fuel and Industry. Different types of fuel used in captive power plant like diesel, gas, coal, and renewable. Diesel and coal account the maximum share in captive power plant market. Demand for uninterrupted power supply from industries increasing the installation of captive power plant. Cement, steel, metals & minerals, etc. require substantial amount of electricity due to rapid economic growth augmenting the growth of captive power plant market

Captive power plant market is likely to witness steady growth owing to rapid demand for continuous and reliable power supply. Expansion of small scale and medium scale industries likely to boost the investment in captive power plant. Captive power plant offers self-generation security combined with high fuel efficiency that enhances the overall efficiency of the factory or industry which expected to bolster the market growth of the captive power plant.

Government and private entities inclination towards renewable energy source to combat rising global warming and strict emission norms by pollution control bodies are inhibiting the growth of the captive power plant market. 

Key Players Covered

The key players in the captive power plant market are Wärtsilä, GE, Welspun Group, Reliance Power, Clarke Energy, Essar, Jindal Steel & Power Ltd., UltraTech Cement, Holtec Consulting Pvt Ltd., and Samsung C&T Corporation

Segmentation

Regional Analysis

The captive power plant market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Expansion of oil & gas industries, rapid investment in information and communication technology, massive industrial growth is expected to increase the requirement of reliable power supply. Installation of own power generation unit by manufacturing companies and industrial park is augmenting the growth of the captive power in North America. Enormous investment by manufacturing companies in Germany for increasing their production capacity along with persistently growing power demand is increasing the installation of captive power plant in Europe. Frequent power outage inhibits economic growth and causes inconvenience to industries and manufacturing units. To mitigate this problem many companies in Asia are installing captive power plant. Tremendous investment by major players in the market and rapid expansion of small and medium scale companies is expected to accelerate the installation of captive power plant in Asia Pacific. Consistent investment in exploration & production of oil & gas by middle east countries and poor grid infrastructure is fuelling the demand of captive power plant in MEA.

Key Industry Developments

• In February 2019, Korangi Industrial Plant signed an agreement with Power Station Pvt Ltd. to develop a captive power plant for the supply of electricity to the industrial park. Under the agreement, the company will set-up a 54MW combined gas power plant at an estimated cost of $70.5 million. 


• In February 2018, Hindustan Petroleum has awarded a contract to Bharat Heavy Electricals for setting up a gas turbine-based captive power plant for its Visakh Refinery expansion project in Andhra Pradesh. The worth of the contract is around Rs 1034 crore.


• In May 2017, GE has signed an agreement with Hindalco industries to upgrade its captive power plant in Uttar Pradesh. Under the agreement contract, GE will modernize two steam turbines at the captive power plant to improve the turbine output up to 4MW each. This will improve the efficiency of the plant and extend the life of this unit by around 20years.