Question

Q9. Consider the following statements:

1 A captive power plant also called autoproducer or embedded generation is a power generation facility used and managed by an industrial or commercial energy user for their own energy consumption.

2. An independent power producer (IPP) or non-utility generator (NUG) is an entity, which is not a public utility, but which owns facilities to generate electric power for sale to utilities and end users.

• A. a) 1 only
• B. b) 2 only
• C. c) Both 1 and 2
• D. d) None of the above

Answer 1

The correct option is C

c) Both 1 and 2

• An independent power producer (IPP) or non-utility generator (NUG) is an entity, which is not a public utility, but which owns facilities to generate electric power for sale to utilities and end users. NUGs may be privately held facilities, corporations, cooperatives such as rural solar or wind energy producers, and non-energy industrial concerns capable of feeding excess energy into the system.
• A captive power plant also called autoproducer or embedded generation is a power generation facility used and managed by an industrial or commercial energy user for their own energy consumption. Captive power plants can operate off-grid or they can be connected to the electric grid to exchange excess generation.
• Captive power plants are generally used by power-intensive industries where continuity and quality of energy supply are crucial, such as aluminum smelters, steel plants, chemical industries, etc