ENERGY AND UTILITIES SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Energy & Utilities Sector in India
Summary/Snapshot
Energy and Utilities Industry
- India stands 4th globally in Renewable Energy Installed Capacity (including Large Hydro), 4th in Wind Power capacity & 5th in Solar Power capacity (as per REN21 Renewables 2024 Global Status Report).
Over the next five years, the government has set out US$ 42 billion in the Union Budget 2021-22 for a redesigned, reform-based, and result-linked new power distribution sector scheme. - With a potential capacity of 363 GW and favorable policies, Northern India is expected to become the hub for renewable energy in India.
- India is building a solar power plant in Rajasthan, which will be the world’s largest with a capacity of 2,255 MW.
- Up to 100%, FDI is allowed under the automatic route for renewable energy generation and distribution projects
- India wants to cut its GDP emissions intensity to 35% by 2030 and boost the use of non-fossil fuels to 40% of total electricity generation capacity. India is on track to exceed its nationally determined target of 40 per cent non-fossil-fuel capacity by 2030.
- India saw the highest year-on-year growth in renewable energy additions of 9.83% in 2022. The installed solar energy capacity has increased by 30 times in the last 9 years and stands at 85.47 GW as of Jun 2024. India’s solar energy potential is estimated to be 748 GWp as estimated by National Institute of Solar Energy (NISE). The installed Renewable energy capacity (including large hydro) has increased by around 128% since 2014.
Growth Drivers
The Government plans to :
- Double the share of installed renewable energy electricity generation capacity to 40% by 2030.
- Reduce emissions intensity by 33% – 35% below the 2005 levels and increase the share of non-fossil fuel in total capacity to ~40% by 2030
- Have 60 solar cities approved and $1.3 bn allocated for setting up 50 solar parks of 40GW by 2020.
- Establish a renewable energy capacity of 523 GW (inc. 73 GW from Hydro) by 2030.
Sub industries
- Oil and Gas Drilling and Production
- Pipeline and Refining
- Mining Companies
- Renewable Energy
- Chemicals
Opportunities
- Reduce India’s total projected carbon emission by 1 Bn tonnes by 2030, reduce the carbon intensity of the nation’s economy by less than 45% by the end of the decade, and achieve net-zero carbon emissions by 2070.
- Under the Green energy corridor program, the government plans to set up 12600 km of inter-state and intra-state transmission lines.
Challenges
- High AT&C losses: Arising due to issues with tariffs affect the ability of distribution companies (discoms) to buy power to supply to the consumers
- Inadequate generation capacity: In the last few years, the capacity to generate electricity has increased but the actual generation of electricity is still low because of a shortage of fuel especially coal and unviable Power Purchase Agreements.
- Shortage of fuel: Increasing power generation costs due to limited fuel availability.
- Differential tariff structure: Supplying electricity at a tariff lower than the cost to supply, along with delays in tariff revisions has led to discoms facing huge financial losses.
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Key Investment Opportunities
India’s renewable energy sector set to attract over $250 billion in investments, with solar PV projects expecting $15.5 billion and battery manufacturing $2.7 billion.
India’s leading conventional energy producers are shifting towards nonconventional energy resources to achieve their sustainability goals and contribute towards generating clean energy.A rapid shift from fossil fuels to clean renewable energy could lead to the creation of 1.5 crore new jobs in India by 2025 and increase savings on electricity bills.
- One of the most important criteria for the expansion of New & Renewable Energy is research, development, and demonstration (RD&D). The Ministry of New and Renewable Energy (MNRE) encourages research and development to develop new and renewable energy technologies, processes, materials, components, sub-systems, products and services, standards, and resource assessments so that new and renewable energy systems and devices can be manufactured locally.
Recent Developments
- As the country continues to adopt clean technologies, there will be a growing penetration of renewable energy into the grid, and more independent microgrids – solar, wind, biomass, battery energy storage, waste-to-energy – will continue to power communities.
- Private LTE and 5G will play a crucial role in the management of future grids by enabling grid edge automation, real-time asset management through drone-based line inspection, VR/AR, and teleprotection.
- By 2050, more bioenergy will be added to the energy landscape. It is estimated that liquid biofuels will surpass petroleum products which is fuelling the industry and transport sector.
- India will continue to invest in processes, technologies, end-use energy efficiency, and carbon footprint reduction. Besides, market-driven mechanisms, such as peer-to-peer energy trading, carbon pricing, congestion-based pricing, and green certificate trading will become more innovative with AI/ML, which will stimulate reallocation of capital and resources to fund these opportunities.
Key Players in India
National
- Adani Power Ltd.
- CESC Ltd.
- Gujarat Industries Power Company Ltd.
- Indraprastha Power Generation Company Ltd.
- NHPC Ltd.
- NTPC Ltd.
- Nuclear Power Corporation Of India Ltd
- Tata Power
- Power Grid Corporation of India Ltd
- Rattan India Power Ltd.
International
- GE Power
- IBDRY
- Constellation Energy Corp.
- NextEra Energy
- Jinko Solar Holding Co. Ltd.
- CSIQ
- SunEdison
- Vestas Group
- BEPC
- Daqo New Energy Corp.
- AQN
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