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 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
Real Estate

Jharkhand to Allot 181 Flats via Online Lottery in February

The Jharkhand State Housing Board (JSHB) will allot 181 houses and flats through an online lottery system starting February. The process will be held for the first time entirely online, and interested applicants can apply from February 10 to March 10 via the JSHB's official website. Properties will be available under different categories, with the allotment based on a 90-year lease. Categories include Economically Weaker Section (EWS), Lower Income Group (LIG), Middle Income Group (MIG), and Higher Income Group (HIG), with varying sizes of houses and prices. For EWS, houses will have a super b..

Next Story
Infrastructure Urban

UP Cabinet Okays Municipal Bonds for Infrastructure

In a significant move aimed at bolstering infrastructure development in Uttar Pradesh, the state Cabinet approved the issuance of municipal bonds for the cities of Prayagraj, Varanasi, and Agra. The decision was made during a cabinet meeting chaired by Chief Minister Yogi Adityanath, which took place in the Maha Kumbh Mela area in Prayagraj. The new initiative will see the issuance of municipal bonds, enabling these cities to raise funds from the market for infrastructure projects. For every billion raised through these bonds, the state government will provide an additional Rs 130 million as ..

Next Story
Infrastructure Urban

Haryana Proposes New Policy on Tree Felling

The Haryana government has proposed a new policy on tree felling across non-forest land, which would remove the requirement for approval in urban areas on plots allocated by government bodies for residential, industrial, or infrastructure development. Currently, the forest department’s consent is mandatory for tree felling. The proposed policy seeks to replace all previous directives on tree felling outside forest areas, including those areas notified under Section 3 of the Punjab Land Preservation Act (PLPA), 1900. A committee is set to be formed to finalize the policy and revise compensat..

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