Cement set for highest increase in growth
The captive power generation market in India is expected to post a CAGR of over 5% during the period 2019-2023, according to the latest market research report by Technavio.
The growth of the Indian economy has led to significant developments in infrastructural activities, mainly led by smart cities and industrial corridors which has boosted electricity consumption.
Based on these activities, a Technavio research reports has forecast a 5% CAGR for the country’s captive power generation market during 2019-2023.
“Smart cities are part of an urban development plan that aims to transform cities using data-driven solutions,” said Technavio, a global research group.
These solutions integrate facilities, infrastructure, and citizens to ensure the efficient management of all the needs of urban areas, it said.
Other than smart cities, the development of industrial corridors and special economic zones (SEZs) in the country has increased significantly.
The development of such infrastructure supports the growth of the captive power generation market in India, the report added.
As per Technavio, the increasing adoption of cogeneration plants will have a positive impact on the market and contribute to its growth significantly over the forecast period.
This captive power generation market in India 2019-2023 research report also analyzes other important trends and market drivers that will affect market growth over 2019-2023.
Captive power generation market in India: Increasing adoption of cogeneration plants
Cogeneration plants, also known as combined heat and power (CHP) or distributed generation, produce two or more forms of energy from a single source of fuel simultaneously.
Such plants offer higher efficiency rates compared with single-generation plants. The critical advantage of cogeneration plants is that they produce additional energy using the waste heat from components such as exhausts of the manufacturing plant to provide electricity and heat for the power plants.
By recycling the waste heat, cogeneration plants offer more energy production, thereby saving the fuel used for production. This results in improved efficiency and lowered OPEX.
Owing to the benefits of cogeneration plants, such industries are adopting the captive power generation technology. The growing need for reliable power supply, coupled with energy-efficient technologies, is expected to drive the adoption of cogeneration plants for captive power generation in India.
“Renewable energy is playing a vital role in the shift toward attaining a more sustainable and less-carbon-intensive environment, owing to the rising environmental concerns,” said Technavio.
India has also shifted its focus toward renewable energy sources for power generation. The significant rise in the adoption of renewable energy sources is attributed to the competitive prices of power generation compared with the traditional modes of power generation.
Moreover, the cost of power generation through these sources is expected to decline further due to the developments in technologies and the production capacity.
“Therefore, the use of renewable energy sources will continue to rise in the captive power generation market in India,” it said.
The metals and minerals segment led the market in 2018 with a market share of over 40%, followed by petrochemicals, cement, sugar, and others respectively.
However, during the forecast period (2019-2023), the cement segment is expected to register the highest incremental growth followed by the sugar segment. fiinews.com
