Despite global energy uncertainties, India’s power sector is resilient, boosted by robust domestic demand and a gradual shift toward cleaner energy sources.
Electricity demand has increased from over 220 GW in December to nearly 235 GW, led by development in the industrial, commercial, agricultural, and residential sectors. Analysts attribute this to increased urbanization, appliance use, and industrial activity.
According to brokers, power consumption increased by 7.4% per year between FY21 and FY25 and is predicted to grow at a rate of 6-6.5 percent per year for the rest of the decade. Peak demand might reach 335-366 GW by 2030, with near-term forecasts of roughly 270 GW this summer.
Global factors are also supporting demand, as rising natural gas prices and supply limitations push consumption to grid power. Long-term power purchase agreements continue to provide revenue stability for utilities.
The sector is approaching a big investment phase, with a greater emphasis on transmission infrastructure and renewable integration. While renewable energy businesses have had valuation corrections, traditional players such as NTPC have remained stable because to reliable returns.
Overall, high demand and ongoing energy transition efforts are projected to support growth, but execution risks and infrastructure readiness remain significant obstacles.
Source – Moneycontrol
