The Captive Power Generation Market size in India is expected to grow by 31.05 GW from 2021 to 2026, at a CAGR of 6.63% during the forecast period, according to Technavio. High industrial power cost is one of the main factors driving India’s captive power-generating industry growth.
The high industrial power tariffs, sale of excess power to open-access trading, and development of smart cities and industrial corridors will offer immense growth opportunities. However, the shortage of coal for captive power generation, intermittency in solar power generation, and stringent government policies for coal consumption in the power sector will challenge the growth of the market participants.
To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The metals and minerals segment would gain considerable market share in captive power generation in India. Metal and mineral extraction and production demand enormous quantities of energy at all phases, including mining, chemical extraction, beneficiation, and recycling.
Furthermore, the amount of load variation associated with the operations is extremely significant, affecting grid stability. As a result, throughout the forecast period, the increased demand for metals and minerals would fuel the expansion of the captive power generation market in India.