Over the years, the Indian power sector has undergone a significant transformation in terms of power supply, energy demand, fuel mix, and market operations. It is the third-largest power generating country in the world. India’s total installed capacity rapidly increased at 8.4% during the FY 2010-FY 2019 period. As of 31st December 2019, India held a total installed capacity of 367.28 GW, emerging as a power-surplus nation.
Segmentation insights:
The power sector in India is characterized by its diversified fuel sources which consists of environmentally sustainable sources like solar, wind and small hydro energy, along with conventional sources like coal, oil and gas. Thermal power was the predominant type of installed capacity in India, accounting for 63.5% of the total installed capacity in FY 2019. The commissioning of various Ultra Mega Power Projects (UMPPs) based on thermal power attributed to the largest share of thermal power in the country’s energy mix.
Key players in the thermal power sector include CESC Limited, Jindal Steel and Power Limited, GMR Energy Ltd and Adani Power Limited.
Companies covered
• Adani Power Limited
• CESC Limited
• Damodar Valley Corporation (DVC)
• NHPC Limited
• NTPC Limited
• SJVN Limited
• Suzlon Energy
• Tata Power Limited
• Websol Energy System Limited
• Nuclear Power Corporation of India Limited (NPCIL)
Renewable energy accounts for 21.8% of the total installed capacity in India in FY 2019, and is the second-leading source of energy in the country. The Indian government’s ambitious target of installing 175 GW of renewable energy capacity, coupled with the establishment of solar parks and the solar city program propelled the growth of clean energy in the country. Furthermore, financial incentives offered by the government are likely to encourage state-owned operators to invest in clean energy parks and ultra-mega renewable energy power parks (UMREPPs).
Nuclear and hydro are other prominent sources of power in India. In order to utilize the enormous hydro-energy potential (~600 billion units per annum), the country has set a target to add 1190 MW of hydro capacity (600 MW in the center 379 MW in private sector, and 211 MW in states) by FY 2020. As of FY 2019, India has 6.78 GW of nuclear energy installed, which is operated by the Central government owned Nuclear Power Corporation of India Limited (NPCIL).
Market influencers:
Soaring demand from the industrial and domestic sectors is a major factor driving the Indian power sector. The industrial sector in India expanded significantly over the past few years, marked by the steady increase in the index of industrial production (IIP) for the electricity domain, from 126.6 in FY 2015 to 156.9 in FY 2019. The industrial sector has been the largest power consumer in India, accounting for around 44.1% of the total power consumption in FY 2019. On the other hand, the consumption from the domestic sector increased swiftly at 7.5% during the FY 2010-FY 2019 period. Improved access to electricity, surge in sales of white goods, and spurring demand for LED bulbs have propelled the demand from the domestic sector. Furthermore, supportive government policies such as UDAY 2.0, 24×7 – Power for All, SAUBHAGYA, UJALA Scheme, Green Energy Corridor, and vehicle electrification aided the growth of the Indian power sector.
The constrained supply of raw materials poses a substantial challenge for the Indian power sector. Players are struggling to acquire raw materials for power generation due to inconsistency in domestic coal supply, fluctuation in international coal prices and shortage of natural gas. Furthermore, the weak infrastructure of the transmission and distribution (T&D) system leads to T&D losses, affecting the power sector. The T&D loss in India is around 20%, which is much higher than other Asian countries. Of late, the thermal power sector has been facing challenges on account of environmental issues, tariff structure, and difficulty in acquiring power purchase agreements (PPA).
Soaring demand from the industrial and domestic sectors is a major factor driving the Indian power sector. The industrial sector in India expanded significantly over the past few years, marked by the steady increase in the index of industrial production (IIP) for the electricity domain, from 126.6 in FY 2015 to 156.9 in FY 2019.
The industrial sector has been the largest power consumer in India, accounting for around 44.1% of the total power consumption in FY 2019. On the other hand, the consumption from the domestic sector increased swiftly at 7.5% during the FY 2010-FY 2019 period. Improved access to electricity, surge in sales of white goods, and spurring demand for LED bulbs have propelled the demand from the domestic sector. Furthermore, supportive government policies such as UDAY 2.0, 24×7 – Power for All, SAUBHAGYA, UJALA Scheme, Green Energy Corridor, and vehicle electrification aided the growth of the Indian power sector.
The constrained supply of raw materials poses a substantial challenge for the Indian power sector. Players are struggling to acquire raw materials for power generation due to inconsistency in domestic coal supply, fluctuation in international coal prices and shortage of natural gas. Furthermore, the weak infrastructure of the transmission and distribution (T&D) system leads to T&D losses, affecting the power sector. The T&D loss in India is around 20%, which is much higher than other Asian countries. Of late, the thermal power sector has been facing challenges on account of environmental issues, tariff structure, and difficulty in acquiring power purchase agreements (PPA).
Power Sector in India Market: Regional Analysis Includes:
- Asia-Pacific (Vietnam, China, Malaysia, Japan, Philippines, Korea, Thailand, India, Indonesia, and Australia)
- Europe (Turkey, Germany, Russia UK, Italy, France, etc.)
- North America (the United States, Mexico, and Canada.)
- South America (Brazil etc.)
- The Middle East and Africa (GCC Countries and Egypt.)
Major Points Covered in TOC:
- Overview: Along with a broad overview of the global Power Sector in India Market, this section gives an overview of the report to give an idea about the nature and contents of the research study.
- Analysis on Strategies of Leading Players: Market players can use this analysis to gain competitive advantage over their competitors in the Power Sector in India Market.
- Study on Key Market Trends: This section of the report offers deeper analysis of latest and future trends of the market.
- Market Forecasts: Buyers of the report will have access to accurate and validated estimates of the total market size in terms of value and volume. The report also provides consumption, production, sales, and other forecasts for the Power Sector in India Market.
- Regional Growth Analysis: All major regions and countries have been covered Power Sector in India Market report. The regional analysis will help market players to tap into unexplored regional markets, prepare specific strategies for target regions, and compare the growth of all regional markets.
- Segment Analysis: The report provides accurate and reliable forecasts of the market share of important segments of the Power Sector in India Market. Market participants can use this analysis to make strategic investments in key growth pockets of the Power Sector in India Market.
Key Questions Answered in the Report Include:
- What will the market size and the growth rate be in 2025?
- What are the key factors driving the global Power Sector in India Market?
- What are the key market trends impacting the growth of the global Power Sector in India Market?
- What are the challenges to market growth?
- Who are the key vendors in the global Power Sector in India Market?
- What are the market opportunities and threats faced by the vendors in the global Power Sector in India Market?
- Trending factors influencing the market shares of the Americas, APAC, Europe, and MEA.
- What are the key outcomes of the five forces analysis of the global Power Sector in India Market?
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