Indian Electricity Industry Growth Opportunities

Indian Electricity Industry Growth Opportunities

Rapid economic growth and the need to decarbonize drives the power sector in India

Expected RELEASE DATE
07-Jul-2022
REGION
South Asia, Middle East & North Africa
Research Code: MGA8-01-00-00-00
SKU: EG02241-SA-MR_26614

$2,450.00

Special Price $2,205.00 save 10 %

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SKU
EG02241-SA-MR_26614

$2,450.00

$2,205.00 save 10 %

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Description

India is the 3rd largest power producer in the world behind China and US. The Indian electricity market has grown continuously since the 1970s due to increasing demand and investments by the government and private companies in power production, and transmission & distribution (T&D). India has focused most of its energy production on coal-based power plants, as the country has the 5th largest coal reserves in the world. Recent efforts include moving away from coal to renewable energy (RE) such as wind and solar power generation in order to reduce carbon emissions. India also has the world’s 6th largest installed base of hydro power with nearly 46 GW of large hydro power and 5 GW of small hydro power. Current total installed capacity is at 392.6 GW in 2021, with future capacity expected to reach 511.5 GW by 2030. Coal will continue to dominate power production, as the country already has a large installed base at 203 GW along with 6 GW of lignite-based coal power installation. Coal is expected to be a major source of power till 2035, as the country seeks to offer base load power to increasing solar and wind power production. Coal power is expected to reduce by 2050 to 185 GW as older plants are shutdown and RE power peaks along with energy storage. Solar PV power is expected to see the highest growth with installation increasing from 50 GW in 2021 to 320 GW in 2050. Wind energy installations will see high growth from 40 GW in 2021 to 110 GW in 2050. Increased focus on RE power is expected as the governments aims to generate more than 50% of its power from RE power by 2030 and reduce carbon emissions by 1 billion tons. India is slated to enter net zero emissions target by 2070. To accommodate this increase in power generation the country is seen investing heavily in T&D networks with nearly 13,279,315 circuit kms of T&D lines built across the country by 2019. The T&D sector is expected to see an investment of $ 80 billion by 2025. To increase power uptake the government is opening up power to trading and away from long term Power purchase agreements (PPA). Currently 86% of India’s power demand is met via long term PPAs. The government has rolled out various innovative products to aid in power trading with the aim of moving all power from long term to short term markets. This is expected to help facilitate in discovering a single national price for power which benefits all stakeholders. The country faces challenges in the form of legacy issues for power distribution as large amount of power is lost during transmission. This along with free power to agriculture and consumers has made distribution companies loss making and heavily in debt. This has led to delay in payment to producers with payback periods extending beyond a year. This along with reliance on imported coal for power production has led to cost increases for power produces which cannot be passed on easily as prices are capped in long term PPAs. The country is expected to face these challenges by opening up the market to private competition in T&D networks and by tying up with foreign institutions to bring in capital, expertise, and technology. The country also seeks to amend regulations by making it easy for consumers to access RE power and increase the use of energy storage solutions in order to store excess power. The government is also introducing smart energy meters in order to track power demand, reduce losses and allowing for prepayment in power. The market trends have been analyzed for the study period between 2020– 2030, with the base year being 2021. Fierce competition is expected to come globally, from US, EU, Chinese and Domestic players as they vie in setting up power plants in the country. Key questions this study will answer. 1) What is the current state of the market and how strong the market will grow till 2030 to 2050? 2) What is the state of various power sources and how will they evolve in the market? 3) How and why coal power dominates the market and how will coal power reduce by 2050? 4) Which are key regions for growth of RE power market and how are they going to transform in the future? Who are the key competitors in the market? 5) How power trading is evolving and how it is expected to change the electricity market in the future? 6) What are the new technologies that are being installed both in the metering and energy storage space? 7) What are the key growth opportunities in the market?

India is the 3rd largest power producer in the world behind China and US. The Indian electricity market has grown continuously since the 1970s due to increasing demand and investments by the government and private companies in power production, and transmission & distribution (T&D). India has focused most of its energy production on coal-based power plants, as the country has the 5th largest coal reserves in the world. Recent efforts include moving away from coal to renewable energy (RE) such as wind and solar power generation in order to reduce carbon emissions. India also has the world’s 6th largest installed base of hydro power with nearly 46 GW of large hydro power and 5 GW of small hydro power. Current total installed capacity is at 392.6 GW in 2021, with future capacity expected to reach 511.5 GW by 2030. Coal will continue to dominate power production, as the country already has a large installed base at 203 GW along with 6 GW of lignite-based coal power installation. Coal is expected to be a major source of power till 2035, as the country seeks to offer base load power to increasing solar and wind power production. Coal power is expected to reduce by 2050 to 185 GW as older plants are shutdown and RE power peaks along with energy storage. Solar PV power is expected to see the highest growth with installation increasing from 50 GW in 2021 to 320 GW in 2050. Wind energy installations will see high growth from 40 GW in 2021 to 110 GW in 2050. Increased focus on RE power is expected as the governments aims to generate more than 50% of its power from RE power by 2030 and reduce carbon emissions by 1 billion tons. India is slated to enter net zero emissions target by 2070. To accommodate this increase in power generation the country is seen investing heavily in T&D networks with nearly 13,279,315 circuit kms of T&D lines built across the country by 2019. The T&D sector is expected to see an investment of $ 80 billion by 2025. To increase power uptake the government is opening up power to trading and away from long term Power purchase agreements (PPA). Currently 86% of India’s power demand is met via long term PPAs. The government has rolled out various innovative products to aid in power trading with the aim of moving all power from long term to short term markets. This is expected to help facilitate in discovering a single national price for power which benefits all stakeholders. The country faces challenges in the form of legacy issues for power distribution as large amount of power is lost during transmission. This along with free power to agriculture and consumers has made distribution companies loss making and heavily in debt. This has led to delay in payment to producers with payback periods extending beyond a year. This along with reliance on imported coal for power production has led to cost increases for power produces which cannot be passed on easily as prices are capped in long term PPAs. The country is expected to face these challenges by opening up the market to private competition in T&D networks and by tying up with foreign institutions to bring in capital, expertise, and technology. The country also seeks to amend regulations by making it easy for consumers to access RE power and increase the use of energy storage solutions in order to store excess power. The government is also introducing smart energy meters in order to track power demand, reduce losses and allowing for prepayment in power. The market trends have been analyzed for the study period between 2020– 2030, with the base year being 2021. Fierce competition is expected to come globally, from US, EU, Chinese and Domestic players as they vie in setting up power plants in the country. Key questions this study will answer. 1) What is the current state of the market and how strong the market will grow till 2030 to 2050? 2) What is the state of various power sources and how will they evolve in the market? 3) How and why coal power dominates the market and how will coal power reduce by 2050? 4) Which are key regions for growth of RE power market and how are they going to transform in the future? Who are the key competitors in the market? 5) How power trading is evolving and how it is expected to change the electricity market in the future? 6) What are the new technologies that are being installed both in the metering and energy storage space? 7) What are the key growth opportunities in the market?
More Information
Industries Energy
No Index No
Is Prebook Yes
Podcast No
WIP Number MGA8-01-00-00-00