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Non-captive power generation refers to the production of electricity by a power plant or generator that is not exclusively meant for self-use by the company or industry that owns it. Instead, the power generated is supplied to the grid or sold to third parties, such as other businesses, residential users, or power distribution companies.

In contrast to captive power generation, where the power plant is set up to meet the energy needs of a specific business or facility, non-captive power plants are typically set up as commercial ventures to generate and sell electricity as their main business.

Key Characteristics of Non-Captive Power Generation:

Electricity is sold to external consumers or the main grid.

Operated mainly by independent power producers (IPPs).

Subject to government regulations and power purchase agreements (PPAs).

Can include sources like coal, gas, hydro, solar, or wind.

Example:

A company builds a solar farm and sells the electricity it produces to a state electricity board or other businesses — this is non-captive power generation.

Let me know if you want a comparison chart between captive and non-captive power generation!

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Loraine Smith

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2mo ago

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