Independent Power Producer

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.

Economic situation

For the majority of IPPs, particularly in the renewable energy industry, a feed-in Tariff or Power Purchase Agreement provides a long term price guarantee.

Canada

In 2002, the BC government stipulated that new clean renewable energy generation in the province would be developed by “independent power producers” (IPPs) not BC Hydro, save for large hydro-electric facilities. The role of the private sector in developing BC’s “public” resources is one of the more controversial issues that British Columbians are currently grappling with.

Taiwan

The liberalization of Taiwan electricity market was done in January 1995. Currently there are nine IPP companies operating in Taiwan.