India's power sector could see Rs 40 trillion investment in a decade: MO
POWER & RENEWABLE ENERGY

India's power sector could see Rs 40 trillion investment in a decade: MO

The power sector in India presents significant investment opportunities estimated to exceed Rs 40 trillion over the next decade, according to a report by brokerage firm Motilal Oswal.

Out of this estimated Rs 40 trillion, Rs 34 trillion is projected to be allocated toward capital expenditure, with the remainder expected in optional investments. Generation, transmission, and smart metering are anticipated to account for 86%, 10%, and 4% of the total investments, respectively.

The report highlighted several factors driving this substantial investment, including the accelerated compound annual growth rate (CAGR) of power demand, the need to upgrade or replace aging infrastructure as the energy mix shifts, and the transition toward cleaner energy sources.

India, the report noted, is in a unique position where rapid growth in real GDP per capita, technological advancements, and increased electrification are strong underlying forces that could sustain higher power demand for years. The brokerage firm stated that, given India's strong GDP growth prospects and the rise of new demand drivers such as electric vehicles (EVs), data centres, and the electrification of energy demand, power consumption in the country could grow by more than 7% annually over the next decade, currently ranging between 8-9%.

By 2035, the report predicted that EVs and data centres would drive one-third of India’s power demand growth. While these sectors currently account for a negligible portion of the country's power demand, the brokerage estimated that by 2035, a significant share of growth could be attributed to them.

India's current primary energy and electricity consumption trends closely resemble China's patterns in the early 2000s. Motilal Oswal also suggested that power consumption in India is at a pivotal point, with an expected annual growth rate of 6.5-7% over the next decade. This growth is likely to compound at 7-7.5% over the next 10 years, compared to the 5% CAGR seen in the previous two decades.

The 14th RAHSTA Expo, part of the India Construction Festival, will be held on October 9 and 10, 2024, at the Jio Convention Centre in Mumbai. For more details, visit: https://rahstaexpo.com

The power sector in India presents significant investment opportunities estimated to exceed Rs 40 trillion over the next decade, according to a report by brokerage firm Motilal Oswal. Out of this estimated Rs 40 trillion, Rs 34 trillion is projected to be allocated toward capital expenditure, with the remainder expected in optional investments. Generation, transmission, and smart metering are anticipated to account for 86%, 10%, and 4% of the total investments, respectively. The report highlighted several factors driving this substantial investment, including the accelerated compound annual growth rate (CAGR) of power demand, the need to upgrade or replace aging infrastructure as the energy mix shifts, and the transition toward cleaner energy sources. India, the report noted, is in a unique position where rapid growth in real GDP per capita, technological advancements, and increased electrification are strong underlying forces that could sustain higher power demand for years. The brokerage firm stated that, given India's strong GDP growth prospects and the rise of new demand drivers such as electric vehicles (EVs), data centres, and the electrification of energy demand, power consumption in the country could grow by more than 7% annually over the next decade, currently ranging between 8-9%. By 2035, the report predicted that EVs and data centres would drive one-third of India’s power demand growth. While these sectors currently account for a negligible portion of the country's power demand, the brokerage estimated that by 2035, a significant share of growth could be attributed to them. India's current primary energy and electricity consumption trends closely resemble China's patterns in the early 2000s. Motilal Oswal also suggested that power consumption in India is at a pivotal point, with an expected annual growth rate of 6.5-7% over the next decade. This growth is likely to compound at 7-7.5% over the next 10 years, compared to the 5% CAGR seen in the previous two decades.

Next Story
Infrastructure Energy

Himachal Pradesh to venture into pumped storage projects: CM Sukhu

Himachal Pradesh Chief Minister Sukhvinder Sukhu announced that the state government had decided to explore the technologically advanced domain of Pumped Storage Projects (PSPs), which are regarded as one of the most reliable solutions for balancing power supply from renewable energy sources like solar and wind. According to an official statement, Sukhu emphasised the importance of these projects in ensuring a stable power grid. During a recent cabinet meeting, the state government approved the allocation of two such projects. These include the 1630 MW Renukaji Pump Storage Project in Sirmau..

Next Story
Infrastructure Energy

Sterling & Wilson Renewable Energy secures two new orders worth Rs 5.12 bn

Sterling and Wilson Renewable Energy (SWREL) announced that it has secured two new contracts worth Rs 5.12 billion. In a regulatory filing, the company reported receiving two domestic solar Engineering, Procurement, and Construction (EPC) orders from private independent power producers (IPPs). These include a 250 MWp DC project in Gujarat and a Letter of Award (LOA) for a 65 MWp DC project in Maharashtra. The orders were placed by two private IPPs, according to a statement from SWREL. Amit Jain, Global CEO of Sterling and Wilson Renewable Energy Group, stated that five out of the six major d..

Next Story
Infrastructure Energy

Centre targeting Jharkhand's mines and minerals: JMM MLA Kalpana Soren

Jharkhand Mukti Morcha (JMM) MLA Kalpana Soren criticised the BJP-led central government, alleging that it has been targeting the state's mines and mineral resources. While addressing a rally in Garhwa, she claimed that the Centre has adopted a discriminatory attitude towards Jharkhand. Soren remarked that prominent central leaders have been frequently visiting Jharkhand, and accused the Centre of exploiting the state's natural resources without fairly compensating it. She stated that although the Centre extracts resources from Jharkhand, it fails to pay the dues it owes. For several month..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000