Indian power sector sees growth driven by rising demand and utility expansion

The Indian power sector is experiencing significant growth driven by rising electricity demand that is currently exceeding projections. This demand is creating a structural deficit, prompting major utilities to embark on large-scale expansion drives across the power value chain. Estimates suggest the total generation asset base of utilities could grow by more than 50 percent by 2030, requiring capital expenditure of approximately Rs 12 lakh crore.

In the stock market, green energy and power-related stocks have shown recent momentum. Companies such as Waaree Energies and Premier Energies have seen growth, supported by expectations of strong second-quarter results and long-term demand. Brokerages like JM Financial have issued various ratings for sector players, maintaining 'Buy' or 'Add' stances on several entities including Suzlon Energy, BHEL, and NTPC, while noting that companies with strong balance sheets and regulated returns are better positioned to handle interest rate risks and high capital requirements.