Did The Power Sector Change in 10 Years? [A Big YES]

India is the 6th largest country in the world to make investments in power and clean energy sector. The industry plays an integral role in the economic development of India as without it no infrastructural growth is possible. The power can be generated from conventional and non-conventional sources using technological advances. The conventional source of power includes coal, oil, hydropower, nuclear power. The non-conventional source includes solar power, wind power and agricultural and domestic waste. The demand for electricity is rising rapidly and these ten years have seen such fast-paced growth. Energy can neither be created nor destroyed, it can only be utilized and changed from one form to another. By applying modern-day technology, experts can harness the power via diverse conventional and non-conventional sources. 

India has occupied the 4th position in the wind power sector and 5th position in the solar power sector. The Government of India has taken the initiative of “Power for all” and this has boosted the demand for electricity in the country. In this decade, India has shown a massive development in the power sector. At the beginning of the decade, in 2010 under the government of Prime Minister Manmohan Singh, Jawaharlal Nehru National Solar Mission was initiated with a target of reaching 20 GW grid capacity by 2022. In 2015, under Prime Minister Narendra Modi, the target was increased to 100 GW. In 2015, Narendra Modi along with the Prime Minister of France, Francois Hollande launched International Solar Alliance. The concern of the Indian government towards the power sector of the nation is prominent in this decade. Let us look at some other major changes that happened in the power sector of India. 

Supply and Demand in the Power Sector 

With the growing technological advances and digitization, the demand is increasing and to meet it more and more plants and wind and solar power farms are being generated. Tamil Nadu is the largest harnesser of wind power, followed by Maharashtra, Rajasthan and Andhra Pradesh. Water and electricity are scarce in India. Still, now,70% of the Indian population is from the rural sector and they are facing difficulties in getting water and electricity.

Since the beginning of the decade, the supply and demand of the power sector are increasing due to electricity penetration, digitization etc. But, in recent years, since 2018, the demand in the power sector has fallen drastically. According to a report by Economic Times, the heavy rainfall of 2018 reduced the power demand in cooling procedures in commercial and agricultural sectors. The supply, demand and the generation capacity are the three pillars on which the strength of the power sector lies. 

As of 2019, the total capacity of the power installation stood at 364.96 Gig watt (GW) and electricity production reached 685.55 BU. Waste management is also playing an important role in meeting the demand of the power sector. Every year above 55 million tons of waste is produced by industrial and domestic sectors, and with the help of technology, energy can be generated from both liquid and solid waste. Prominent companies in waste to the energy sector are Hitachi Zosen India Pvt Ltd, Clarke Energy etc.

Biomass and coal contribute directly to fulfilling the demand of the population. Majority of the population hailing from rural sector use coal, while liquid petroleum gas is used in urban and semi-urban areas. India is still at a very premature stage in the biofuel sector which comprises of ethanol and biodiesel. Just like wind and solar power, India is also developing in the hydroelectric power sector. India is the 7th largest producer of hydroelectric power in the world. Several plants are producing above 25 MW hydropower and they are under the ambit of Ministry of Power of India. In these 10 years, the demand has increased at a steady rate and the power generation capacity of the country is has also improved for meeting the requirements of the users. 

Milestones Achieved

 In this decade, India has achieved several milestones, thus acquiring a noteworthy position in the global power sector industry. The energy deficit in 2014 was 4.2% and it reduced to 0.7% in 2018. As of 2019, above 363 million LED bulbs were sold at an affordable rate through private and government channels with an aim to reach 100% electrification. In 2015, Cochin International Airport became the world’s first fully solar-powered airport. India’s initiative to develop the power sector is going in full swing it is sure to reach many more milestones in recent years. 

Prospective Investments in Power Sector 

From 2009 to 2019, in these two decades, the sector of India has earned US$ 14.54 billion from Foreign Direct Investment, which is about 3% of the total FDI inflows of India. The power sector is attracting a lot of attention from the investors as it is one of the active players in the market, like insurance, automotive and retail. (Add links of these blogs here). In 2019, National Thermal Power Corporation Ltd announced to invest US$ 7.26 billion in the solar power sector. Brookfield invested US$ 800 million in ReNew Power. Shapoorji Palonji will invest Rs 750 crores in a floating solar power project in Uttar Pradesh. The power sector is the backbone of every other sector and infrastructural developments in India. 

Wind Up

India is the 7th largest producer of electricity. All the states and the union territories are working hard in fulfilling the vision of the nation. Both the conventional and non-conventional resources are used for harnessing power, the natural resources are the only ways in which power can be generated, like water, wind, solar power etc. The climatic change, global warming is adversely affecting the power sector, not just in India but also the world. The sudden forest fires in Amazon and Australia show that the world is at a brink of a destructive climate change, and these will be a tough challenge for the power sector. In this decade, the power sector has faced several challenges, ups and downs. All the drifts of the sector can never be depicted in one post. 

The power sector is directly impacting India’s economic growth. Do you want to know what else changed in this decade? Talk to our niche skilled experts now to know the diverse competitive market in greater detail! We at Vedak have an exclusive pool of experienced industry professionals and veterans who have in-depth knowledge in the power sector. Contact us to know more.