The power sector has been one of the top-performing sectors in the Indian stock market, outpacing the broader market indices by a significant margin in recent years. The NSE Energy index, which tracks the performance of major power companies, has delivered impressive returns compared to the benchmark Nifty 50 index. Over the last year, NSE Energy has outperformed Nifty 50 by a wide margin.
While BSE Sensex has generated returns of around 16 per cent, the BSE Power index has surged by a staggering 88 per cent during the same period. This outperformance can be attributed to several factors, including the government’s focus on improving the power sector’s efficiency, the increasing adoption of renewable energy, and the growing demand for electricity across various sectors of the economy.
Sector Landscape
India’s installed power capacity has grown exponentially, reaching 441.96 GW as of March 2024. However, India has set an ambitious goal of achieving 777 GW of installed capacity by 2030, where 500 GW will be derived from non-fossil fuel sources. Currently, fossil fuel sources account for 55 per cent of the total installed capacity, while the balance 45 per cent is from non-fossil fuel sources. The detailed source mix breakdown of the current installed capacity can be understood through the following pie chart.
Renewable Energy Surge
Renewable energy has taken centre-stage in India’s power sector, where renewable sources of energy are expected to contribute around 65 per cent of the total installed capacity by 2030 from the current level of 45.75 per cent of the total capacity. Currently, solar is leading the charge in the renewable space. Solar power monthly generation has grown from just 8,338.2 MU in March 2022 to 12,225.8 MU in March 2024, making India one of the world’s largest solar markets.
Solar Shortfall
この記事は Dalal Street Investment Journal の May 20, 2024 版に掲載されています。
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この記事は Dalal Street Investment Journal の May 20, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
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