Market Research Reports - Ken Research India Power Generation Sector Research Report | Page 2

debts and the surplus power is a threat to the bank as well as the nation’s economy. Therefore,
the solar power growth is a blessing, but can become a curse with much state of affairs.
Solar power generation is great while the sun shines and stops at sunset. The power
consumption soars during evening. It was also observed that the thermal power remains idle
during the day and is ready to pick up the slack when solar production suddenly stops. Such
strained idleness evolves huge hidden costs while estimating the solar power generation
initialization procedures. If the cost of the solar equipment is decreasing then it is true that the
solar power has become cheaper than coal-based power. Solar power generation is sporadic
because the process is inevitable during night and on cloudy or foggy days. The Indian
government is promoting solar energy through economic and promotional incentives like
capital investment or interest subsidies, tax holidays on earnings for 10 years, generation based
incentives, accelerated depreciation, viability gap funding, and financing rooftop solar as part of
home loans.
India’s power sector is most diversified with sources of power generation range from
conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power to viable
non-conventional sources such as wind, solar, and agricultural and domestic waste. The
demand for electricity has increased rapidly and is expected to rise further in the coming years.
GE Energy Financial Services (GEEFS), Greenko Energy Holdings, Private equity (PE), Mahindra
and Mahindra Ltd, Hero Future Energies Pvt Ltd., Tata Capital Ltd., CDC Group Plc, Japan’s JERA
Co. Inc, International Finance Corporation (IFC) are few major investors in the development of
the Indian power sector.
The power sector was identified by the government of India as a major key sector to focus and
promote sustained industrial growth. Pradhan Mantri Sahaj Bijli Har Ghar Yojana , no clearance
required for solar PV (photovoltaic) power, solar thermal power projects, and solar parks,
Street Lighting National programme (SLNP), Power for All program, Development of Solar Parks
and Ultr a Mega Solar Power Projects are few initiatives by the government of India to boost the
Indian power sector.
Power is one of the most critical components of infrastructure crucial for the economic growth
and welfare of a country. The existence and development of adequate solar power
infrastructure is essential for sustained growth of the Indian economy. India's solar power
capacity is an addition to the already existing power sector creating immense opportunities in
power generation, distribution, transmission, and equipment. The Indian government’s
immediate goal is to generate two trillion units of energy in the near future which is doubling
the current production capacity to provide continuous electricity for residential, industrial,
commercial and agriculture use.