SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 155

HIGH PRIORITY MARKET- POWER
Market Size
Indian power sector is undergoing a significant change
energy installed capacity totaled 42.6 GW and 37.4 GW,
that has redefined the industry outlook. Sustained
respectively. At 5.8 GW, nuclear energy capacity
economic growth continues to drive electricity demand in
remained broadly constant compared with the previous
India. The Government of India’ s focus on attaining
year. India ' s rooftop solar capacity addition grew 66 per
‘ Power For All’ has accelerated capacity addition in the
cent from last year to reach 525 Mega Watts( MW), and
country. At the same time, the competitive intensity is
has the potential to grow up to 6.5 giga watts( GW) 1.
increasing at both the market and supply sides( fuel,
India’ s wind power capacity, installed in FY2016, is
logistics, finances, and manpower).
estimated to increase 20 per cent over last year to 2,800
The Planning Commission’ s 12th Five-Year Plan estimates
Mega Watt( MW) 2, led by favourable policy support that
total domestic energy production to reach 669.6 million
has encouraged both independent power producers( IPP)
tonnes of oil equivalent( MTOE) by 2016 – 17 and 844
and non-IPPs.
MTOE by 2021 – 22. By 2030 – 35, energy demand in India
India’ s wind energy market is expected to attract
is projected to be the highest among all countries
investments totaling Rs 1,00,000 crore( US $ 15.7 billion)
according to the 2014 energy outlook report by British oil
by 2020, and wind power capacity is estimated to almost
giant, BP.
double by 2020 from over 23,000 MW in June 2015, with
As of November 2015, total thermal installed capacity
an addition of about 4,000 MW per annum in the next
stood at 196.2 gigawatt( GW), while hydro and renewable
five years.
Investment Scenario
Around 293 global and domestic companies have
Between April 2000 and September 2015, the industry committed to generate 266 GW of solar, wind, mini-hydel attracted US $ 9.97 billion in Foreign Direct Investment and biomass-based power in India over the next 5 – 10( FDI). years. The initiative would entail an investment of about US $ 310 – 350 billion.
Some major investments and developments in the Indian power sector are as follows:
Ÿ
SunEdison, world’ s largest renewable energy
Ÿ
The Dilip Shanghvi family, founders of Sun Pharma,
company, plans to continue its focus on‘ Make in
acquired 23 per cent stake in Suzlon Energy, with a
India’ by further reducing the cost of renewable
preferential issue of fresh equity for Rs 1,800 crore
energy and developing over 15 gigawatts( GW) of
( US $ 284.8 million).
wind and solar projects in the country by 2022.
Ÿ
Reliance Power Ltd signed an accord with the
Ÿ
ThyssenKrupp India, the Indian arm of the German
Government of Rajasthan for developing 6,000 MW of
engineering conglomerate, plans to make high-grade
solar power projects in the state over the next 10
environment-friendly boilers which use less fuel, for
years.
the Indian power sector by collaborating with a
Ÿ
Hilliard Energy plans to invest Rs 3,600 crore( US $
foreign company.
600 million) in Ananthapur district of Andhra Pradesh
Ÿ
Aditya Birla Group has announced a partnership with
in the solar and wind power sector for the generation
the Abraaj Group, a leading investor in global growth
of 650 MW of power.
markets, to build a large-scale renewable energy
Ÿ
Solar technology provider SunEdison signed a
platform that will develop utility-scale solar power
definitive agreement to acquire Continuum Wind
plants in India.
Energy, Singapore, with assets in India. The company,
Ÿ
Sterlite Grid, India’ s largest private operator of
headquartered in Belmont, California, would take over
transmission systems, is joining hands with US major
242 MW of operating wind assets that Continuum
— Burn & McDonnell for its Rs 3,000-crore( US $ 462.5
owns and operates in Maharashtra and Gujarat as
million) power transmission project in the Kashmir
well as 170 MW of assets under construction.
valley.
Ÿ
Japanese internet and telecommunications giant
Ÿ
Inox Wind Ltd, a subsidiary of Gujarat
SoftBank, along with Bharti Enterprises( of Sunil
Fluorochemicals, a wind energy solutions provider,
Mittal) and Taiwanese manufacturing giant Foxconn,
plans to double its manufacturing capacity to 1,600
plan to invest US $ 20 billion in solar energy projects
MW at a total investment of Rs 200 crore( US $ 31.6
in India.
million) by the end of the next financial year.
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