OCTOBER 20249INDIA'S POWER SECTOR TO OPEN DOORWAYS FOR INVESTMENT WORTH INR 40 TRILLION83 PERCENT OF AUTOMOBILE BUYERS LOOKING TO BUY EV BY 2030: THE HARRIS POLLIndia's power sector is set for substantial growth, with investment opportunities projected to surpass 40 trillion over the next decade, as highlighted in a report by Motilal Oswal. Of this, approximately 34 trillion is expected to be directed towards capital expenditure, with the remainder linked to optionality ventures. The majority of this capital expenditure will be concentrated in three key areas: power generation, transmission, and smart metering. These sectors A recent survey conducted by Urban Science and The Harris Poll has revealed that a majority of new car buyers in India are prepared to embrace new energy vehicles (NEVs), with 83 percent of prospective buyers considering purchasing an NEV by 2030. According to the study, these buyers are willing to pay up to a 49 percent premium for an electric vehicle (EV) over a comparable petrol or diesel vehicle.are predicted to account for 86 percent, 10 percent, and 4 percent of the total investment, respectively.Several factors are driving this massive investment in India's power infrastructure. The accelerating power demand, bolstered by the country's robust GDP growth and advancements in technology, is one of the primary catalysts. Additionally, there is a pressing need to upgrade or replace outdated power infrastructure as the electricity mix undergoes significant changes, particularly with India's increasing focus on cleaner, renewable energy sources. The report highlights that India is in a unique position where burgeoning GDP per capita, along with a shift towards electrification and technology upgrades, are creating strong undercurrents that will likely continue to push power demand higher for many years.Motilal Oswal's report projects that India's power consumption will grow at a compound annual growth rate (CAGR) of over 7 percent in the coming decade, with the rise of electric vehicles (EVs) and data centers playing a pivotal role in driving future demand. By 2035, these two sectors alone could account for one-third of the total power demand growth. Currently, EVs and data centers represent only a small fraction of India's power consumption, but they are expected to gain significant traction in the coming years. This trend mirrors China's power consumption trajectory in the early 2000s, where rapid economic growth and increased energy needs led to a significant surge in power usage. The survey, which gathered input from 1,000 Indian buyers as part of a global study that also included the US, Australia, China, and Germany, highlights a strong positive outlook for NEVs in India. This enthusiasm is primarily driven by the expansion of public EV charging infrastructure, which is rapidly growing in major cities and tier-2 cities across the country. Currently, India has over 6,000 charging stations, a number projected to rise to 100,000 by 2027.India's shift towards NEVs is also encouraged by the government's proactive policies in the EV segment. However, the survey pointed out that India's efforts to lead in the EV space face challenges, especially in comparison to China's dominance in producing lithium-ion batteries and electric motors and establishing large-scale charging infrastructure.To stay competitive, the survey suggests that India could collaborate with Chinese companies to leverage their expertise in EV technology, helping to accelerate the development of India's EV infrastructure and making electric vehicles more affordable and accessible. China's successful large-scale EV projects, such as city-wide electric bus fleets and extensive charging networks, offer a valuable model that India can learn from to fast-track its own transition to electric mobility.
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