What is Captive Renewable Energy?
In the context of renewable energy, captive power generation refers to a system where a business or industrial facility generates its electricity from renewable energy sources such as solar, wind, or biomass, primarily for its consumption.
Companies often set up this type of power generation to meet their energy needs independently rather than relying on power from the national grid or external energy providers. Read this article on Captive Renewable Energy to know about it in detail.
Key Features of Captive Renewable Energy
Read on to learn about the important features of captive renewable energy.
Self-Consumption
Captive power plants are set up primarily for the owner’s use. The company uses the energy generated, reducing dependence on external energy suppliers.
Ownership and Control
The company that establishes a captive power plant owns and operates it giving it greater control over energy production, cost management and sustainability goals.
Cost Savings
Since the company generates its power, it can reduce its energy costs in the long run. Additionally, renewable energy sources like solar and wind often have lower operational costs compared to traditional fossil fuels.
Sustainability
Captive renewable energy allows companies to reduce their carbon footprint and meet environmental goals by switching to clean energy sources. This is particularly attractive for companies with corporate sustainability targets.
Excess Power Sale
In some cases, if the company produces more power than it needs, it can sell the excess energy back to the grid, generating additional revenue.
Benefits of Captive Renewable Energy
You can find out about the captive renewable energy benefits by reading the following points:
Energy Independence
Companies can achieve energy security by relying on their renewable energy generation, which protects them from fluctuating grid prices and energy shortages.
Regulatory Incentives
Governments often offer tax benefits, subsidies, or incentives to businesses that invest in renewable energy projects. This can reduce the upfront costs of setting up a captive power plant.
Long-Term Savings
Although the initial setup costs of renewable energy systems can be high, the long-term operational costs are lower due to minimal fuel expenses, reduced grid dependency, and maintenance.
Sustainability and Brand Image
Using captive renewable energy helps companies meet sustainability goals and improve their environmental impact, which is increasingly important for brand reputation and customer trust.
Examples of Captive Renewable Energy
Let us look at some of the examples of captive renewable energy.
Solar Power Plants
Many companies install solar photovoltaic (PV) systems on their rooftops or nearby land to generate electricity for their operations. For example, large factories or commercial buildings can meet a significant portion of their energy needs with solar panels.
Wind Power
Some companies, especially those with larger land areas, set up wind turbines to generate electricity. Wind power is ideal for industries located in areas with high wind potential.
Biomass and Biogas
Industries that produce organic waste (like agriculture or food processing companies) often use biomass or biogas plants to generate captive renewable energy.
Captive Power in Renewable Energy Policy
Many governments are encouraging captive renewable energy projects to promote clean energy and reduce carbon emissions. Policies such as net metering which allows businesses to sell surplus electricity to the grid and Renewable Purchase Obligations (RPOs). This enables certain industries to use renewable energy.
Conclusion
Captive renewable energy is an attractive solution for businesses looking to achieve energy independence, reduce costs and enhance sustainability efforts. By generating clean energy, companies not only save on energy expenses but also contribute to a greener and more sustainable future.
Ready to operate your business sustainably? Altilium helps businesses to install captive renewable energy systems in their businesses. To ensure the smooth functioning of business without harming the environment, contact us!