INVESTMENT OPPORTUNITIES IN ENERGY SECTOR IN INDIA
With India’s focus on digitising the energy sector and vast improvements in the energy availability and its heart on ensuring and pushing for sector reforms, the opportunities for investors from US is increasing wherein they are ready to invest on diverse energy plans rather than sticking to the conventions, in this case, the conventional energy plans in the energy value chains. In other words, the confidence of investors has been boosted by these measures taken by the Government in the energy sector. Apart from conventional energy resources like thermal power, US investors are looking to partner with Indian firms in the abundant wind and solar energy sectors. Since India’s infrastructure development is on the rise, in the power generation space, investors can associate themselves with EPC or engineering, procurement and construction. Today, investors can participate as IPTCs or Independent Private Transmission Companies owing to the privatisation of transmission companies.
There are several other opportunities offered by the energy sector like manufacturing of components:
Electrical equipment: As there are more and more voices supporting renewable energy, there is a need for technology upgrade in the T&D or transmission and distribution space. Industry players are focusing on upgrading to the next higher voltage system of 765 kV. They are also looking to supply transformers and other related equipment in this segment. Due to the reduced emissions and efficiency of clean coal technology for thermal power plants, the Government of India is focusing on highlighting their use. The upgrade of infrastructure at the existing plants is a major investor-friendly move.
Solar Photovoltaics or Solar PV: Solar rooftops have been in the news in India since the last few years. But what many don’t know is India’s ambitious plan to generate 40 GW of power from the use of solar rooftops for which 26 states have favorable policies towards net metering. Alongside, the incentives for domestic manufacturing under Make in India present a viable opportunity for solar PV in India.
Modules: Many fiscal incentives have been launched to boost the domestic manufacturing of PV modules within India which have so far been predominantly imported from China.
Inverter: The local industry’s move from 600 V to 1,000 V has contributed towards a low-cost ‘1,500 V structure’ which has started to attract a lot of global players to invest in India and set up factories within the country to meet the local power demand.