India still lacks a robust and comprehensive energy network. There are still many people who are not linked to the grid, and power outages occur practically every day. Given the variety of power production techniques used, the Indian energy industry is among the most varied in the world. It employs both traditional and non-conventional energy sources, including wind, solar, hydro, biomass, and municipal waste, in addition to coal, natural gas, oil, and nuclear power. The energy sector has seen a significant upheaval as a result of the Indian government’s goal of running the country solely on renewable energy. In addition to investing in renewable energy sources including solar and wind power, the infrastructure is being modernized.
India aims to increase the share of non-fossil fuels in the overall capacity of power generation to 40% and reduce its GDP emissions intensity to 35% by 2030. By 2030, India aims to surpass its nationally set objective of 40% non-fossil fuel capacity.
2020 saw an 8.2% decrease in hydro-based output and a 4.6% increase in nuclear-based generation. The Nuclear Power Corporation of India plans to construct five nuclear energy facilities with a combined 10,000 megawatt capacity.
The Indian government is aware that the industry requires private investment. As a result, several steps have been made to encourage investment, such as the implementation of multiple incentive programs. Over the next ten years, the Indian government has set some lofty objectives for itself. For instance, the nation aims to attain zero carbon emissions by 2070, obtain 50% of its total power output from renewable energy sources by 2030, and cut its carbon emissions by 45% by the end of the decade. In addition to creating intriguing potential for businesses in the energy industry, this is also driving up energy consumption due to the nation’s steady and fast economic expansion.
What Data Speaks About India’s Utilities and Energy Sector
By 2030, India wants to have 500 GW of clean energy capacity, with around 280 GW coming from solar energy. The energy minister of India stated that as of February 2023, the country has a total generation capacity of 412.21 GW, of which around 100 GW originated from clean sources. After China, India has the second-highest capacity for producing wind power in Asia.
India is the world’s lowest producer of solar energy and has the fifth-fastest developing solar energy industry.
Indian Government’s Key Initiative To Attract Investments
In an effort to draw substantial investment for the expansion of India’s offshore wind sector, the Indian government has declared that it will establish 5 GW of offshore wind projects by 2022 and 30 GW by 2030 as part of its “National Policy for Offshore Wind Energy”.
Rooftop solar (RTS) installations with a combined capacity of 40 GW are the aim of the “Grid Connected Solar Roof Top Program” by 2022. DISCOMs will carry out the project with a federal financial investment of INR 11,814 crore in total.
Research, development, and demonstration is one of the most important requirements for the growth of new and renewable energy (RD&D).
Research, development, and demonstration is one of the most important requirements for the growth of new and renewable energy (RD&D). In order to enable the local production of new and renewable energy systems and devices, the Ministry of New and Renewable Energy (MNRE) supports research and development aimed at developing new and renewable energy technologies, processes, materials, components, subsystems, products and services, standards, and resource evaluations.
Ongoing Obstacles Needs to Be Addressed
High AT&C losses: Resulting from tariff disputes, these losses impact distribution firms’ (discoms’) capacity to purchase electricity for customer use.
Insufficient capacity for generation: Although there has been an increase in power generation capacity in recent years, actual energy generation remains low due to a lack of fuel, particularly coal, and unprofitable power purchase agreements.
Lack of fuel: Rising expenses associated with producing electricity as a result of scarce fuel.
Differential tariff arrangement: Due to delays in price changes and the provision of energy at a rate less expensive than the cost of delivery, discoms have suffered enormous financial losses.
Key Innovations in the Indian Utilities and Energy Sector
The nation’s adoption of clean technology will lead to an increase in the amount of renewable energy entering the grid and the number of autonomous microgrids that power communities using waste-to-energy, biomass, solar, wind, and battery energy storage.
Because they enable VR/AR, teleprotection, drone-based line inspection for real-time asset management, and grid edge automation, private LTE and 5G will be critical to the administration of future grids.
The energy landscape will include more bioenergy by 2050. Liquid biofuels are predicted to overtake petroleum products, which are now powering the transportation and industrial sectors.
India will keep making investments in end-use energy efficiency, technology, processes, and lowering its carbon footprint. In addition, market-driven systems like carbon pricing, congestion-based pricing, peer-to-peer energy trading, and green certificate.
Developments/investments
Total FDI inflows in the power sector reached US$ 17.00 billion between April 2000-September 2023, accounting for 2.60% of the total FDI inflow in India.
Major Investments and Developments in the Indian Power Sector (Refernce: IBEF)
- India ranked fourth in the list of countries to make significant investments in renewable energy by allotting US$ 77.7 billion between 2015 and 2022.
- In FY24 (until November 2023), the power generation in India was 1,176.13 BU.
- India’s electricity generation from renewable and non-renewable sources for FY21, FY22, and FY23 was 1,373.08 BU, 1,484.36 BU, and 1,617.72 BU, respectively.
- The power generation industry in India will require a total investment of Rs. 33 lakh crore (US$ 400 billion) and 3.78 million power professionals by 2032 to meet the rising energy demands, as per the National Electricity Plan 2022-32.
- By 2031, the current installed nuclear power capacity is expected to rise from 7,480 MW to 22,480 MW because of the progressive completion of projects under construction and accorded sanction.
- As informed in August 2023, towards achieving carbon-neutral Ladakh, NTPC is setting up a hydrogen fuelling station, and solar plant and providing five fuel cell buses for operation on intracity routes of Leh.
- In August 2023, North Eastern Electric Power Corporation Limited (NEEPCO), a 100% subsidiary of NTPC, took a significant step towards sustainable energy development by signing a Memorandum of Agreement (MoA) with the Government of Arunachal Pradesh.
- In July 2023, NTPC’s Group installed capacity touched 73,024 MW.
- In July 2023, PFC signed various MoUs worth Rs. 2.37 lakh crore (US$ 29 billion) with 20 companies in the clean energy space.
- In August 2023, Tata Power EV Charging Solutions Limited (TPEVCSL), a Tata Power group Company and Zoomcar, a leading marketplace for car sharing, entered into a Memorandum of Understanding (MoU) to promote widespread electric vehicle adoption and deliver a seamless, user-friendly charging experience to EV users nationwide.
- In August 2023, SJVN was conferred with “2nd Annual Greentech Quality & Innovation Award 2023” under the category of Quality Improvement.
- In June 2023, Tata Power, one of the leading players in the electric vehicle (EV) charging infrastructure space, collaborated with the Ayodhya Development Authority to set up EV charging points in public parking locations across the city.
- Tata Power Company has been recognised as the country’s ‘Most Attractive Employer Brand’, according to the recently published Randstad Employer Brand Research (REBR) 2023 report by HR services provider Randstad India.
- In June 2023, a Memorandum of Understanding (MoU) was signed between NHPC Limited and the Government of Odisha through GRIDCO Limited for “Development of Pumped Storage Projects (PSPs) and Renewable Energy in the State of Odisha”.
- India has the potential to attract an investment of over US$ 20 billion in renewables in 2023.
- In May 2023, NTPC commenced its venture into hydrogen and energy storage solutions with the establishment of a hydrogen hub in Andhra Pradesh.
- In May 2023, TP Saurya Tata Power Trading Company Ltd. signed a power purchase agreement to set up a 200 MW solar project at Bikaner, Rajasthan.
- Adani Group is exploring a US$ 3 billion investment in Vietnam’s seaport ecosystem and wind and solar energy projects.
- In February 2023, Tata Power inaugurated ‘Divyang’ a managed customer relations centre in Mumbai, which is a first among Indian power utilities.
- In January 2023, the Union Cabinet (CCEA) approved investment of US$ 315 million (Rs. 2,614 crores) for SJVN’s 382 MW Sunni Dam Hydro Project.
- In January 2023, President of India laid foundation stone of SJVN’s 1000 MW Bikaner Solar Power Project in Rajasthan.
- In January 2023, the President of India dedicated transmission system built by Powergrid for 8.9 GW of solar power in Rajasthan.
Keeping Ahead with the Trends in Utilities and Energy Sector
It’s critical to keep up with new developments that will affect your staff and the kinds of training necessary for them to continue being productive, safe, and compliant at work if you want to stay ahead of the curve.
Leading patterns now influencing the utilities and energy sectors:
A change in favor of renewable energy. Global obligations to sustainability are what motivate this. Businesses will need to provide personnel with cross-training in solar, wind, battery, and other renewable energy solutions as the industry shifts towards cleaner energy.
rapid increase of jobs. The shift to digital. Businesses may increase operational efficiency and safety by integrating digital technologies like artificial intelligence (AI), smart grids, and the Internet of Things (IoT). The staff in the utilities sector will need to be knowledgeable about data analytics, cybersecurity, and how to use these essential new technologies.
Cybersecurity: For businesses in this industry, IT security continues to be a top investment concern. As the number of connected devices increases, so does the need of securing IoT and SCADA networks and devices. These devices’ constant updating and full visibility present a risk to businesses operating in the industry.
Internet of Things: To monitor and manage networks, utilities are investing more money in IoT technology. The development of data management and data platform or data lake plans and initiatives is being driven by the utilization of these technologies to enable the gathering and storage of field data.
