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Raghavendra Mirji

Senior Vice President & Head, Power Infra, Renewable Energy & Busduct Business

Godrej & Boyce

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LATEST TRENDS IN ENERGY SECTOR Growth drivers for the energy sector

Dec 2, 2021

Looking at the slow growth in RE, the government pushed its boundaries to accelerate growth by allowing private participation - Raghavendra Mirji, Senior Vice President & Head, Power Infra, Renewable Energy & Busduct Business, Godrej & Boyce

The energy sector is one of the most crucial infrastructure components for the economic growth and welfare of nations. While the transmission sector showed steady growth over the past years, barring the exception of the pandemic in FY 2020-21, the power sector has witnessed some ups. With further investment plans, the sector is said to experience promising growth in the future. Amendments on policy reforms like the Electricity Act amendments & the tariff policy will improve the sector enormously. Here are some significant trends that will act as a growth driver for the energy sector:

  • Development in technology: Despite various issues in the power sector, like power cuts, network issues, loss, etc, the sector has seen a massive transformation in the time of need. The wake of the pandemic has proved to be a force of emerging technological developments with the implementation of smart technologies like an evolved grid system, smart metering, going digital for systems for smart & efficient work and building a new process for smooth processing.

  • Focus on amendments in policy: While there are many fantastic policies like UDAY, Power of All, UJALA, and a few others that changed the industry viewpoint, newer policy reforms, like digital mechanisms, electricity amendment bill, are set to bring a massive change in the sector. The government has started implementing the reform initiatives like privatisation of DISCOMs in union territories in anticipation of dynamic results.

  • Green energy: India aims at increasing its RE share to 40% of the total generation by 2030. Renewable energy is the trend with new capacity additions of 500 GW by 2030. There are many steps taken to make less hazardous plans for nature; for example, the demand for EVs is increasing rapidly, which will eventually increase the demand for power consumption.

  • Foreign investments: Looking at the past few years of slow growth in addition to the pandemic, the government pushed its boundaries to accelerate growth by allowing private participation. This step is huge and success in the business may also attract foreign investments, which will boost the growth.

Just as the power sector in India is diversified sourcing from conventional to non-conventional sources, the electricity demand has massively increased. This has given rise to the demand for renewable energy sources in the last five years. Solar energy and wind energy are on the top in contributing to the total energy consumption.

The future of power and renewable energy is bright because of the advancements and efforts to improve quality and efficiency. Though innovative advancements have been proposed, there is a lot of scope for more. Right from opportunities for power in railways to using modernised technology in renewable energy, we have a lot of new developments to look forward to. New plans for the smart city across the nation have bought many opportunities to innovate. The makers are also looking for nature-friendly options to create energy. For instance, using non-conventional sources of energy with advanced technology is remarkable. Therefore, we can expect a noticeable double-digit growth in the energy sector.

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