London, 28 July 2014: TechNavio, an independent tech-focused global research firm, reports that problems relating to grid interconnection are a key driving force behind growth in the Captive Power Plant (CPP) Market in India.
Poor quality of power, the non-availability of adequate grid supply and the unreliability of grid supply have forced heavy industries to set up their own CPPs rather than depend on grid supply.
The major captive power consumers in India are the iron and steel, cement, chemical, and mineral oil and petroleum industries, which account for more than 50 percent market share.
Shifting Trends Towards Captive Power Plants
Although conventional fuels such as coal, gas, and diesel are predominantly used in captive power generation, renewable energy solutions appear to be making inroads into the market. A key factor driving this trend has been efforts to rationalize energy costs through fuel portfolio optimization. With the rise in fuel supply problems for coal-based CPPs, along with the increase in the price of diesel, the development of renewable energy-based CPPs such as solar, wind, and biomass has been gaining importance. Although PV systems are not feasible for the metal and chemical industries, there is potential for approximately 15 GW of solar captive power to supply electricity to commercial and public entities and educational and medical institutions
“In order to solve the problems related to shortage of fuel supply and increase in the prices of coal and diesel, many companies are installing multi-fuel CPPs. This has also helped in solving the challenges for space in setting up a CPP,” says Faisal Ghaus, Vice President of TechNavio.
To determine the scenario for these vendors in the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.
If you are interested in more information on this topic and our upcoming research on Captive Power Generation Market in India, please send an e-mail to media@TechNavio.com.
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