Global Captive Power Generation Market is expected to Boost Owing to Growing Utilization of Captive Power Plants across Large Industries

Captive Power Generation Market

Captive power generation is growing fairly at an aggressive pace across the world. Captive power generation is the method of power generation facilitated by captive power plants that is used & managed by a commercial or industrial energy user for their own use. Power crisis is affecting economic productivity and thus growth of captive power plants has generated a dual track in power industry.

Rise in electricity traffic charged by long power cuts, forced outages, poor reliability of electric supply, and electric utility has encouraged most of the industries to switch over to their own power generating plants. This is one of the prime factors that has exponentially boosted the growth of the global captive power generation market. Further, growing use of captive power generation from petrochemicals as well as metals & minerals industry are driving the growth of the global market. In addition to this, increase in development of iron & steel projects and heavy investments in establishment of new steel plants are adding up to the market growth. Also, increase in demand for reliable and cost-effective power-supply is fostering the growth of the market. Furthermore, ability of captive power generation to offer secured power-supply and enhance environmental performance resultant from fuel efficiency may open enormous opportunities for the growth of the global market. However, scarcity of coal for captive power generation can act as a major blocker for the market growth.

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The global captive power generation market is fragmented based on fuel source, end-user, and region. Based on fuel source, the global market is divided into gas, diesel, coal, and renewables. The end-user industries comprise petrochemicals, metals & minerals, sugar, cement, and others.

Asia Pacific is estimated to hold maximum share in the global captive power generation market and is likely to retain its topmost position during the forecast period. Factors such as rapid expansion of petrochemical industries and presence of manufacturing base of aluminium & steel in countries like China & India are driving the market growth in this region. Europe is estimated to grow at a faster rate with growing demand for cost-effective power supply and growing inclination of industries towards captive power generation. In addition to this, presence of advanced technology is adding up to the growth of the market in this region.

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Reliance Industries, Welspun Group, Vedanta Limited, Essar Energy, Jindal Power & Steel, L&T Power, Clarke Energy, Wartsila, GE, SEPCO Electric Power, and Enmas GB Power Systems, among others are some of the dominant players that are operating in the global captive power generation market. In Oct 2021, Aspira Ltd partnered with Clarke Energy to end factory downtime due to power cuts.

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