Latest News- Captive Power Generation Market in India: Metals and minerals is expected to lead the End-user segment during 2025-2029

The Captive Power Generation Market in India is being driven by High industrial power tariffs

The Captive Power Generation Market in India is expected to grow at a CAGR of 7.9% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 8757.6 million. In the industrial sector of India, cogeneration plants, also referred to as combined heat and power (CHP) or distributed generation systems, offer significant advantages over traditional single-generation power plants. These innovative energy solutions produce both electricity and heat from a single fuel source, resulting in enhanced efficiency levels. The key value proposition of cogeneration lies in the utilization of waste heat generated from industrial processes, such as exhausts from manufacturing plants. By harnessing this excess heat, cogeneration plants increase overall energy production, thereby reducing the need for additional fuel consumption and subsequently lowering operational expenditures (OPEX). This approach is particularly beneficial for energy-intensive industries like fertilizer and textile, where effective heat utilization is crucial to their operations. Cogeneration plants contribute to improved efficiency and cost savings, making them a preferred choice for businesses seeking sustainable energy solutions. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• End-user
  • Metals and minerals
  • Sugar
  • Cement
  • Petrochemicals
  • Others
• Fuel Type
  • Coal
  • Diesel
  • Gas
  • Renewables
• Ownership
  • Multiple
  • Single
• Technology
  • Reciprocating engine
  • Diesel generators
  • Combined heat and power (CHP)
  • Gas turbine
  • Steam turbine
• Geography
  • India

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• High industrial power tariffs
• Sale of excess power to open-access trading
• Development of smart cities and industrial corridors

However, the market also witnesses some limitations, which are as follows:

• Shortage of coal for captive power generation
• Intermittency in solar power generation
• Stringent government policies for coal consumption in power sector

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Market Scope in Captive Power Generation Market in India Research Report

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Research Analysis Overview

In India, the Captive Power Generation Market is witnessing significant growth, particularly in sectors like industrial, commercial, and residential power generation. Coal power continues to dominate, but there's a shift towards distributed generation from renewable sources for carbon emissions reduction. Smart grids and grid modernization facilitate renewable integration, while industrial demand forecasting ensures security strategies for industries. Power electronics and efficient distributed generation solutions enhance industrial efficiency. Cogeneration plants, diesel engines, and industrial audit for cost optimization are key areas of focus. Sustainable industrial development through industrial policy and decarbonization is a priority, with infrastructure development driving cement demand and construction of captive power plants. Industrial innovation, automation, and management are crucial for efficient industrial equipment and power supply. Capital costs, industrial tariffs, and smart cities are other significant factors influencing the market.

Market Research Overview

The captive power generation market in India is a significant segment of the electric utility industry. Electric utilities encompass entities that specialize in the generation, transmission, and distribution of electricity. These entities can be publicly owned, investor-owned, nationalized, or cooperatives, engaging in various aspects of the industry. In contrast, the water utilities market value chain comprises infrastructure developers, service/technology providers, equipment manufacturers, testing organizations, and end-users. Both utilities sectors are capital-intensive industries, with domestic companies responsible for the reliable and safe delivery of water and electric services, including wastewater treatment and power generation.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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