Group Captive Power Generation Solutions & Its Benefits

Group Captive Power Generation

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Solutions & Its Benefits

Overview

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A Captive Generating Plant or a group captive solution is a power plant set up taken up by any person, business, cooperative society, or an association of persons/companies for the purpose of generating electricity primarily for their own use.

A power generation plant is considered to be captive only if:

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More than 51% of its generated electricity is used by the owner(s), and The minimum aggregate ownership of the group captive solutions is at least 26%.

Benefits of Group Captive Solutions •

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In a group captive model, cross-subsidy and additional surcharges are not levied on the power procured.

In this model industrial tariffs tend to be higher than the residential, and it affects the profit maximization condition. Thus, industries will get a cheaper rate.

The consumers in the group captive scheme no longer need to worry about bureaucratic utilities.

A group captive power generation solution can play a supplementary role in supplying power to the grid and in alleviating power shortages in the country.

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