According to a survey conducted by KPMG, consumption of electricity in India, which is currently around 600 Terawatt hours per annum, is all set to double by 2020, exceeding Russian levels in the meantime, as per the news published by The Hindu.

 

Increase in demand for power is expected to be driven by factors like growth in population and wealth, increasing economic activity, infrastructure developments and improved standards of living.

 

The Indian power sector will also be pushed by government’s initiatives and reforms, for instance, distribution network Reforms Program. In addition to this, the sector’s future growth will be backed by reforms like National Electricity Policy and the Electricity Act.

 

KPMG has also mentioned in the study that coal, which as of now provides nearly 70% of the country’s power, will continue to be a dominant primary fuel, offering commercial opportunities to manufacturers who are world leaders in high-efficiency clean burn plant.

 

Moreover, the demand-supply gap is expected to broaden further with the increasing demand. Therefore, the total power production capacity should reach 241 GW (241,000 MW) from the current 90 GW (90,000 MW) to meet around twice the current consumption capacity. As of now, total installed power capacity of India is 147,402.81 MW, as per The Centre for Monitoring Indian Economy (CMIE).

 

The broadening power demand-supply gap is also shaping enormous opportunity for private investment supported by the government policies. According to “Indian Power Sector Analysis”, a RNCOS market research report, as per the estimates, India, until 2030, will require investments worth US$ 1250 Billion in energy infrastructure, with 76% of the investment going to power generation, transmission and distribution.

 

According a Research Analyst at RNCOS, “India’s GDP has been growing by around 8-9% per annum for past several years, thus creating enormous demand for energy. However, the demand-availability deficit continues to be one of the major areas of concern for the power industry, which is bothering the economy’s competitiveness. Although private sector generation is on the rise, the country might face roadblocks like electricity theft and inefficiencies in power transmission and distribution systems till 2020.”