Harnessing renewable energy has become more accessible and economical, thanks to innovative models like Captive and Group Captive power generation. These models offer attractive tariff rates, often lower than the prevailing grid tariffs, paving the way for sustainable and cost-effective energy solutions.
Captive Power Model:
In the Captive framework, corporate entities make the initial capital investment to own a utility-scale renewable project. Essentially, this means the corporation independently funds and owns the energy-producing asset, using the green energy produced for its own commercial or industrial consumption. Here, Prozeal Green Energy steps in, not only to construct the renewable power plant but also to oversee its operation and maintenance throughout its lifespan.
Key Benefits of the Captive Model:
- The Levelized Cost of Electricity (LCOE) over a 25-year span is significantly lower than fluctuating Grid Tariffs. While open access charges still apply, there are exemptions from cross-subsidy surcharge and additional surcharge.
- There are substantial tax benefits available through Accelerated Depreciation claims against renewable energy assets.
- Prozeal delivers an end-to-end solution, including a comprehensive Operations & Maintenance (O&M) service for 25 years.
Group Captive Power Model:
The Group Captive model is tailored for shared consumption. Under this framework, a renewable project is set up for joint use by multiple corporate entities. These corporates form a Special Purpose Vehicle (SPV) for the group captive. In this arrangement, corporate buyers hold a combined 26% equity in the project and are contractually bound to consume a minimum of 51% of the generated power.
Key Benefits of the Group Captive Model:
- Corporate buyers benefit from reduced capital expenditure, as they only need to invest in 26% of the project's equity via the SPV.
- The Power Purchase Agreement (PPA) signed with the SPV ensures a green energy tariff that's considerably lower than variable grid tariffs, guaranteeing consistent savings.
- Prozeal streamlines the entire process by providing a full-suite solution, including a 25-year O&M service. This means corporates can transition to green energy effortlessly, without the need for any technical expertise.
In conclusion, both Captive and Group Captive models present a robust pathway for corporates to integrate renewable energy into their operations, and with Prozeal Green Energy's expertise, the journey is seamless and advantageous.