Captive / Group Captive
Cost-effective renewable energy frameworks enabling Commercial & Industrial consumers to procure green power with zero cross-subsidy surcharge and long-term tariff certainty.
Captive Model
A captive power plant is an electricity generation facility owned and operated by commercial or industrial consumers for their exclusive energy consumption. These plants offer autonomy and reliability to businesses by providing a dedicated source of power tailored to their specific needs.
Renewable captive power plants utilize sustainable energy sources such as wind, solar, hybrid, etc., offering businesses the opportunity to reduce their carbon footprint while ensuring a stable and sustainable energy supply. These renewable energy solutions not only contribute to environmental conservation but also offer long-term cost savings and energy independence to the businesses that employ them.
Key Drivers for Captive Power Plant
Commercial & Regulatory Drivers for C&I Consumers
Group Captive Model
The Group Captive Model entails an electricity generation facility owned and operated by multiple commercial or industrial consumers for their exclusive energy consumption.
Under this model, the power generated from the captive or group captive generating plant must be utilized by the captive user(s), who collectively invest at least 26% of the equity in the project company. This arrangement allows participating businesses to share the benefits and responsibilities associated with owning and operating the power generation facility, while also ensuring a stable and reliable energy supply tailored to their specific needs.
Group Captive Structure
26% Equity Shareholding • 51% Energy Consumption Mandate
Group Captive Model Variations
Group Captive Consortium Model Variations
Benefits of Captive Power Plant
Tangible financial savings, exemption from state surcharges, and long-term operating cost insulation.
Reduction in Power Bills
Substantially lower per-unit tariffs compared to conventional DISCOM commercial grid rates, providing instant operational cost relief.
Nil Additional Surcharge
Exemption from Additional Surcharges (AS) under Electricity Act provisions for certified captive and group captive consumers.
Nil Cross-Subsidy Charges
100% legal waiver of Cross Subsidy Surcharges (CSS), saving significant per-kWh distribution levies on open access power wheeling.
Extra Savings
Compounded operational energy savings over a 25-year plant lifecycle, protecting your manufacturing units from annual grid inflation.
Tax Benefits
Eligibility for accelerated tax depreciation write-offs and green energy ESG tax credits on corporate capital accounts.
Minimum Investment
Low initial capital requirement with only 26% proportionate equity stake in SPV while reaping 100% proportional clean power benefits.