Power Market in India Size to grow by USD 465.95 billion between 2024-2028
According to a research report “ Power Market in India” by Technology (Thermal, Renewables, Hydroelectric, Nuclear) End-user (Industrial, Commercial, Residential) Source (Non-renewable, Renewable) Geography (APAC)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 465.95 billion, at a CAGR of 9.19% during the forecast period. The Indian power market is experiencing significant growth, driven by the shift towards low-carbon and sustainable energy sources. In response to the imperative of reducing carbon footprints, particularly in the mining sector, coal and lignite companies are actively investing in renewable energy initiatives. These firms are expanding their energy portfolios by investing in both rooftop and ground-mounted solar projects, as well as exploring the development of solar parks on previously mined lands. As of May 26, 2023, coal and lignite public sector undertakings (PSUs) have installed approximately 1,656 MW of solar capacity and 51 MW of wind capacity, underscoring their commitment to a more sustainable energy future.
Browse market data tables, figures, and in-depth TOC on “Power Market in India” by Technology (Thermal, Renewables, Hydroelectric, Nuclear) End-user (Industrial, Commercial, Residential) Source (Non-renewable, Renewable) Geography (APAC) Global Forecast to 2028. Download Free Sample
By Technology, the Thermal segment is projected to dominate the market size in 2024
In the Indian power market, industrial consumers play a pivotal role with varied electricity requirements stemming from manufacturing, processing, and infrastructure activities. Key industries such as steel, cement, chemicals, textiles, and automotive manufacturing are significant electricity consumers in India. The collective demand among industries for a dependable and efficient power supply is imperative to maintain operations and stimulate innovation. Notably, in January 2024, the Asian Development Bank (ADB) and SAEL Industries Limited, through its subsidiary SAEL Solar P4 Private Limited, signed a USD147 million loan agreement. This financing will facilitate the development of a 400-megawatt (MW) greenfield solar power plant in Gujarat, India, furthering the country's shift towards renewable energy and sustainable economic growth.
By End-user, Industrial segment is expected to hold the largest market size for the year 2024
In the Indian power market, thermal power technology assumes significance as a primary source of electricity generation. This technology involves the combustion of fossil fuels like coal, natural gas, and oil to produce high-pressure steam in boilers. The steam subsequently drives turbines linked to generators, transforming thermal energy into electrical power. Thermal power plants, serving as baseload facilities, are essential in addressing India's escalating energy requirements due to their dependability and cost-effectiveness. The country's extensive coal reserves, acting as a readily available and reasonably priced fuel resource, significantly influences the prevalence of thermal power technology in the Indian power sector.
APAC is forecasted to hold the largest market size by region in 2024
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The Power Market in India growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Indian power market is a significant component of the country's infrastructure landscape, playing a crucial role in meeting the electricity demand of its growing economy. In recent years, there have been numerous infrastructural activities focused on expanding generation infrastructure to ensure supply security. Major power plants, both thermal and renewable, have been set up to increase capacity and meet annual power consumption, which stood at around 1,260 TWh in 2020. Macroeconomics plays a significant role in the power market, with asset transactions influencing the regulatory structure. The regulatory framework is designed to encourage investment in the power sector while ensuring affordable and reliable electricity for consumers. The electricity demand in India is projected to grow at a compound annual growth rate of 5.5% between 2021 and 2026. The power market in India is undergoing a transformation, with a focus on increasing generation capacity from renewable sources. The government's target is to achieve 175 GW of renewable energy capacity by 2022. This shift towards renewable energy is expected to bring about a significant reduction in greenhouse gas emissions and improve energy security. Overall, the Indian power market presents a promising investment opportunity for both domestic and international players.
Market Research Overview
The Power Market in India is witnessing significant shifts due to the increasing focus on renewable energy sources and government policies aimed at reducing the dependence on thermal power generated from coal-fired plants. Renewable power projects, including solar energy, are receiving Viability Gap Funding and Concessional Financing through schemes like the National Solar Mission. Subsidies and Financial Incentives are also being provided to boost the sector. However, thermal power projects continue to dominate the Installed Base with Coal-fired Generation Capacity accounting for over 60% of the total. India's vast Coal Reserves make it an attractive source for thermal power generation. Foreign Investment is flowing into the sector, with major power projects being set up in solar energy. The Population's increasing electricity demand and Infrastructural Activities in the Transport sector require a reliable and secure Supply Security. Asset transactions, Acquisitions, Debt offerings, and Deal Types are becoming common in the Power Market. The Regulatory Scenario and Macroeconomics play a crucial role in the Power sector's future potential. The Government Policies are aimed at ensuring Generation infrastructure meets the Annual power consumption demands. The Power Market's major players are focusing on Capacity expansion and Consumption patterns to stay competitive. The Generation and Capacity balance will continue to be a critical factor in the Power Market's growth.
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