Captive Power Plant Market: Increasing Power Deficit Hampering Global Development
·
Industries and commercial complexes heavily rely on electricity
for their operations. Their power requirements are usually met by state
electricity boards or country power grids. However, there is an eminent threat
of a power cut when industries are solely dependent on power grids for their
operations.
·
Rise in gap between the demand for and the supply of electricity
across the globe is hitting hard, especially on industries, due to continuous
interruption in their operations
·
Growing industrialization and urbanization has resulted in surge
in the demand for electricity from all sections of the society. Though power
generation capacities are increasing, they are unable to meet surged power
demand, resulting in increase in the power deficit.
·
Power deficit poses a roadblock in the development of any
economy. Though countries are planning to reduce this deficit to a certain
extent, they have still not been able to overcome it fully.
·
Power deficit puts a lot of strain on manufacturing and other
industries, thereby directly hampering the overall growth of an economy and its
GDP (gross domestic product)
Key Drivers of Captive Power Plant
Market
·
Increasing demand for continuous and high-quality power supply
in industries and the commercial sector is a key driver of the global
captive power plant market. Increase in power outages and fluctuations
in power quality are major concerns for industries. These factors hamper the
productivity of industries and result in major losses for companies. In order
to minimize losses and enhance productivity, industries are implementing and
integrating captive power plants in their vicinity to obtain reliable power
supply at all times.
·
Reduction in transmission and distribution losses is another
factor driving the global captive power plant market. Use of captive power
plants results in on-site power generation, which eliminates the need for
transmission and distribution of generated power, thereby cutting losses that
are quite high in a utility grid infrastructure. This increases the overall
efficiency and effectiveness of the power plant and the electricity generated.
·
Cost saving during peak hours is another major driver of the
market. Power utility companies charge premium prices to industrial consumers
for peak-hour power consumption. This increases operating costs incurred to
these consumers. However, a captive power plant, if used in conjunction with a
utility grid, helps in saving these costs by providing excess power and
limiting power withdrawal from the utility grid.
High Capital and Operating Costs of
Captive Power Plants May Restrain the Market
·
Building and integrating a captive power plant requires high
capital investments, due to the level of infrastructure required and high
machinery costs. Operating costs of these plants are also quite high, which
directly depend on the fuel type and fuel cost. Thus, high capital and
operating costs may restrain the captive power plant market during the forecast
period.
Request
Sample
https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=71202
Adoption of Renewable Energy to
Provide New Opportunities
·
Adoption of renewable energy sources, such as solar and wind,
for captive power generation provides new opportunities to the global captive
power plant market. Using renewable energy not only helps in reducing emissions
of greenhouse gases, especially CO2, but also attracts various incentives from
government and regulatory bodies.
·
Renewable energy helps companies in meeting their
environment-related objectives. It also benefits these companies by providing
monetary or regulatory benefits for adoption of renewable energy. Thus,
adoption of renewable energy is paving a new path for captive power plants and
making them popular among industrial end-users.
More Trending Reports
Asia Pacific Expected to Hold a Leading Share of the Global Captive
Power Plant Market
·
Asia Pacific is anticipated to lead the global captive power
plant market during the forecast period. It is likely to be followed by North
America and Europe. The region is one of the major industrial centers expanding
at a significant pace. This is estimated to boost the demand for captive power
plants in the region from 2019 to 2027.
·
Developing countries in Asia Pacific, especially China and
India, are witnessing rapid industrialization and urbanization, while the utility
power grid in these countries are still unable to cope up with this rate of
growth. Thus, industries in these countries are opting for renewable captive
power plants, as they attract incentives from governments in the form of tax
rebates.
·
In North America and Europe, aging grid infrastructure and high
electricity prices are compelling industries to opt for captive power plants
·
Power shortages and frequent power cuts in several countries of
Latin America and Middle East & Africa are likely to drive the demand for
captive power plants in these regions during the forecast period.
Key Players in the Market
Prominent
players operating in the captive power plant market include:
·
Clarke Energy
·
Wärtsilä
·
MAN Diesel & Turbo
·
Welspun Captive Power Generation Limited
·
Rolls-Royce Power Systems AG
Buy Now
https://www.transparencymarketresearch.com/checkout.php?rep_id=71202<ype=S
Comments
Post a Comment