India’s power generation capacity FY30 to reach 780GW with an annual increase of 10%: UBS report

The demand for India’s extreme power is determined to increase rapidly in the coming years as the country’s electrification drives gather, with a total demand of 335 GW (GW) by the total demand FY30.
UBS research estimates that India will require a total power generation capacity of 780GW by FY 30, which estimates an annual growth of 10 percent, which is faster than the 6 percent average GDP growth recorded between FY15 and FY25. The link between GDP and electricity demand is also shifting. Historically, the demand for peak power increased by 0.85 times at the actual GDP growth rate, but with an increase in industries and homes, it is expected to increase by about 0.92 times.
In addition to 305GW power generation capacity in the next five years, three times the capacity between FY20 and FY25 is expected to be seen. While most of this will come from renewable sources such as solar and air, UBS research notes that the thermal power will still be necessary to ensure grid stability when renewable is not generated.
The forecast comes with a call to a new wave of investment in power generation to meet this growing requirement. Earlier, India’s power generation was mainly dominated by thermal plants owned by the government and the state -owned enterprises. But renewable energy boom has stepped up more private players.
The report said, “As long as economics is favorable, the private sector will continue to invest in renewable energy production, while the government will continue to invest in thermal energy.”
Thermal plants are expected to contribute about 40 percent of the new power generation in the medium period, the government has targeted the addition of about 80GW thermal capacity by FY32.
At the same time, the report states that the solar manufacturing sector faces challenges. Given heavy capital and technology requirements, UBS research estimates that only about 60 percent of the declared solar cell capacity will be commissioned.
The industry’s financial approach seems strong, the research financial year increases the overall profit for the power sector to increase the financial year for more than 25 years for more than 25 years, with companies in its coverage universe expected to increase revenue of 34 percent and an increase in income from FY28 to 46 percent from FY28 to 46 percent. (AI)