BRIDGE TO INDIA believes in the captive consumption model to be viable in the long-term for the Indian solar market. We offer investors an attractive investment opportunity in one of the fastest growing segments of the PV market in India. These investment opportunities are designed to work without government subsidies.
The key highlights of the opportunity are:
- Attractive return on investment
- Scalability of projects
- Investment independent of subsidy schemes
- Reliable and thoroughly scrutinized business partners
- No project development risks
- German engineering quality at highly competitive price
- Management of complete process in the interest of the investor
Captive power generation refers to power generation from a plant installed by an end-user for self-consumption. The commercial sector is one of the largest consumers of power in India. Most customers rely on the own power generation facilities for three reasons:
- Non-availability of grid power, especially in industrial and rural areas.
- Poor quality of grid power – Frequent interruptions and fluctuations.
- High-tariffs as a result of heavy cross-subsidies – Commercial consumers pay nearly ten times higher tariffs than agricultural consumers.
The Central Electricity Regulatory Commission (CERC) estimates that total captive consumption in the country is at 11,600 MW. Leading industry players feel that it is closer to 20,000 MW. Estimates indicate that nearly 30% of total energy requirement in the Indian industry comes from in-house captive power plants. Nearly 45% of these are run on diesel. Rising prices of both diesel and grid electricity are forcing the industry to look for alternatives. The price of diesel has risen by a CAGR of 9% between 2001 and 2011. Commercial electricity prices have risen by an average of 5% per annum during the same period.
BRIDGE TO INDIA believes that solar PV can be viable without government subsidies. Our captive consumption business models are designed to operate without government support and to run in a competitive environment at market conditions.