An independent power producer (IPP) or non-utility generator (NUG) is an entity that is not a public utility, but owns facilities that generate electric power for sale to utilities and end users.[1][2][3]
NUGs may be privately-held facilities, corporations, cooperatives such as rural solar or wind energy producers, or non-energy industrial concerns capable of feeding excess energy into the system.[4]
An independent water and power producer (IWPP) is similar to an IPP, but operates a unified process to also output usable treated water.[5]
Economic situation
For most IPPs, particularly in the renewable energy industry, a feed-in tariff or power purchase agreement provides a long-term price guarantee.
IPPs have been successful in driving the electricity sector's transition to renewables globally, owning the majority of the currently operating renewable energy generation capacity.[6]
IPPs by country
Canada
Electricity regulation in Canada is governed at the provincial level, and there are differences between the provinces for how IPPs are integrated into the electric system.
In 2002, the government of British Columbia stipulated that new clean renewable energy generation in the province[7] would be developed by independent power producers (IPPs) not BC Hydro, save for large hydro-electric facilities. IPPs now produce a significant proportion of the power generated in BC.
Germany
Rare in Germany for decades, the IPP business model has grown more common since the EEG (for renewable energy). Success in the approach depends on finding a partner for distributing the produced energy to the customer.
India
India also has many IPP's like ReNew Power, Adani, Onix Renewable, KPI Green Energy, Hero, Mytrah, Ostro, Greenko, Alfanar, Mahindra Susten
References
- Independent Power Producer (IPP) – Americas Generators Gopower.com, retrieved 2012-02-08^
- Gas engines for IPPs, www.clarke-energy.com, accessed 11 November 2013^
- SAIPPA - Homepage SAIPPA, retrieved 4 March 2026^