Indian Economy News

India's power sector has investments opportunity of Rs. 40,00,000 crore (US$ 461.95 billion) over next decade: Motilal Oswal

  • IBEF
  • January 17, 2025

According to a report by Motilal Oswal, the Indian power sector presents an investment opportunity worth Rs. 40,00,000 crore (US$ 461.95 billion) over the next decade, driven by rising demand, infrastructure upgrades, and the transition to clean energy. The report highlights "triple tailwinds" – increasing power demand, the need to modernise ageing infrastructure, and India’s goal of achieving 500 GW of renewable energy (RE) capacity by 2030. Power demand is expected to grow at a compound annual growth rate (CAGR) of 7% compared to the previous 5%, driven by economic growth, technological advancements, and electrification.

The report further notes that new drivers of demand, including electric vehicles, data centres, and the electrification of energy, will significantly boost power consumption in India. It predicts that by 2035, electric vehicles and data centres will account for one-third of the growth in power demand, compared to their negligible share today. The report also suggests significant opportunities in renewable energy generation and transmission, as the private sector’s limited involvement in thermal energy creates execution risks. In contrast, renewable energy and transmission infrastructure offer attractive prospects, such as Power Grid’s Rs. 2,00,000 crore (US$ 23.10 billion) capital expenditure (capex) opportunity. However, regulatory risks related to market coupling in energy exchanges remain unpredictable.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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