Captive generation, also known as auto-generation, refers to the production of electricity by an industrial or commercial entity for its own use. This approach is often adopted in response to frequent power outages and inadequate grid supply, allowing businesses to ensure a reliable power source without relying solely on the central grid, which distributes electricity to various consumers. Captive generation is particularly essential in regions where the public power grid is unreliable or insufficient.
Beyond business continuity, captive generation systems are increasingly important in areas with inconsistent power supply, providing a critical solution for maintaining operations. In a recent report by The Guardian Nigeria, it was noted that the federal government is considering incentives for companies investing in renewable captive generation systems. This initiative is expected to accelerate the adoption of sustainable energy practices, promoting environmental conservation while addressing the ongoing challenges in the nation’s power supply.
Types of Captive Generation
There are various types of captive generators, each manufactured to satisfy different needs or operations:
- Diesel Generators: These generators are common in smaller industries and residential setups. They are reliable but can be costly due to fuel expenses.
- Gas Generators: These generators are more efficient and environmentally friendly than diesel generators. They are often used in larger industrial operations.
- Renewable Energy System: These generators use solar, wind, and biomass as their source of power. They are becoming increasingly popular due to their sustainability and potential cost savings in the long term.
How Captive Generation Works
Captive generation systems typically involve the installation of generators within the premises of the company. These generators can be connected to the public grid if the need arises. Other than that, they operate independently. Companies often choose the size and type of generator based on their energy needs, cost considerations, and environmental impact.
