MAY 20248TOP STORIESINDIA MAY REQUIRE $500 BILLION CAPEX IN POWER TRANSMISSION BY FY50Goldman Sachs expects that India's power transmission capex requirements will exceed $500 billion by FY50, accounting for 30% of the overall energy transition capital outlay.Power Grid Corporation of India (PGCIL) will benefit the most from its estimated $500 billion grid total addressable market (TAM) between FY24-50, accounting for one-third of India's overall energy transformation TAM, as per goldman."Power transmission is key to India's energy transition and global new energy cost leadership ambitions. India's large, highly integrated grid enables the utilisation of least-cost renewable generation sites, and by keeping the central grid access free, the government is assisting the viability of renewable projects via indirect financial support worth $270 billion," Goldman Sachs added."It's large balance sheet, low cost of debt and strong annual free cash generation position it favourably to capture the bulk of our TAM estimate", it said. PGCIL also benefits from being qualified for direct nomination to construct large, complex, multi-region projects, which it claims would see a significant increase as India concentrates on cross-border grid interconnections."Our analysis of PGCIL's cash flows implies PGCIL alone will be able to fund 30 percent of India's planned grid capex by FY32, while maintaining its current dividend payout," the report said. Goldman sees Hitachi Energy India as a pure upstream manufacturing opportunity in India's energy revolution. "Hitachi is a global leader in high voltage equipment manufacturing and has achieved meaningful levels of indigenisation in India. In fact, Hitachi Energy India manufactures 80 percent of Hitachi Energy's global equipment portfolio with capability to manufacture 75-80 percent of HVDC systems (by value) domestically," it said. Ntpc Green Energy Limited, a subsidiary of NTPC Limited, has signed an agreement with Indus Towers Ltd. to address the requirement for pacing environmentally friendly green energy goals and the GoI's endeavors towards a carbon-neutral economy. The Memorandum of Understanding will investigate the joint improvement of matrix-associated sustainable power-based power projects, including wind, solar and energy capacity and an organization explanation added.Indus Towers Ltd, a telecommunications company, expects to grow its environmentally friendly power portfolio in a staged way to the giga-watt (GW) scale limit for its business tasks nationwide on account of its net zero responsibilities.The MoU was endorsed by Soumya Kanti Chowdhuri, Chief General Manager, NGEL and Vikas Poddar, Chief Financial Officer (CFO), ITL, in the presence of other senior authorities from NTPC and ITL.NTPC is India's biggest power utility, with the center business of power generation having a total installed limit of 76 GW. It has aggressive plans to reach 60 GW of Renewable Energy by 2032; presently, it has 3.5 GW of installed RE limit and 28+ GW under pipeline.ITL, the nation's driving passive telecom framework supplier, conveys, claims, and oversees more than 211,775 telecom towers and correspondence structures. With a presence in the 22 telecom circles, Indus Towers takes special care of wireless telecommunication service providers in India. NTPC GREEN & INDUS TOWERS SIGN PACT TO DEVELOP RENEWABLE ENERGY PROJECTS
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