Golden period for the Electricity / Power Industry

There is a once in a lifetime global energy mix transition underway. Current primary energy consumption is divided into electricity: transport: industry/buildings in the ratio of 20:30:50. Share of electricity and hydrogen (also produced from electricity) is expected to grow upto 50% of the total primary demand. This will imply the following for electricity sector in India.

·??????Electricity demand will increase by more than 4 times in the next twenty-five years driven by (1) increase of electricity use in transport , buildings , and industry ; (2) growth in electricity demand in line with the economic growth.

·??????This growth in electricity demand will be driven by renewables .

·??????Power generation will jump from 1.5 trillion units to more than 6 trillion units.

·??????Currently renewableenergy including hydro contributes 25% of the generation with 40% of total installed capacity of 400 GWs. This is expected to rise to nearly 70 to 80% by 2050, implying a capacity requirement of more than 1600 GWs in renewable capacity alone.

·??????This implies a growth of nearly 10 times in the renewable capacity in the next 25 + years.

·??????Greenhydrogen produced largely from electrolysis process is expected to contribute nearly 10% of total primary energy supply by 2050.

This implies a grand opportunity for stakeholders in the industry, irrespective of which part of the value chain they are in. It will also require an extremely rapid scale of technological development and market structure evolution; which we have not witnessed in the last 100 year history of this industry.