india: performance of energy sector · source: tecnova research, cea, ibef, goi, industry reports...

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India: Performance of Energy Sector

Quarterly Update: Q1 FY 2021 (Apr’2020 – Jun’2020)

August, 2020

Authored by: Durgesh Sahu, Consultant (Energy)


Key Economic Indicators

5th

Largest economy in the world

2.2 % Contribution of Energy Industry to real GDP in

FY20

6+ Mn New Employment Generated, Direct

& Indirect in FY 2020*

5.5% Of global energy

consumption

3rd Largest Energy Producer in the

world

USD 49.97 Bn

Total FDI in Indian Economy in FY 2020*

Bn: Billion; CPI: Consumer Price Index; FDI: Foreign Direct Investment; GDP: Gross Domestic Product; GW: Giga Watt; Mn: Million; MW: Megawatt; TWh: Tera Watt Hour USD: United States Dollar

Source: IBEF, CEA (Central Electricity Authority, SBI Reports

4.2 % CPI Rate in FY

2020

*: Metrics in FY20 across sectors and industries, manufacturing and service

4.5%-5% Contraction expected in Growth of GDP in

FY21


Photo by Sharath G. from Pexels

Bn: Billion; GW: Giga Watt; USD: United States Dollar

Energy Industry Trend

280.33

326.84 344

356.1 371 371

FY16 FY17 FY18 FY19 FY20 FY21**FY 21 is the projected installed capacity

Installed Electricity Generation Capacity (GW)

Split of Installed Capacity Based on Source of Generation

Coal 55%

Renewable 24%

Hydro 12%

Gas 7%

Nuclear 2%

*Categorization of sources is as per Central Electricity Authority

Capacity: 371 GW

Source: IBEF, CEA (Central Electricity Authority)

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Facts and Figures

Bn: Billion; GW: Giga Watt; Mn: Million; MW: Megawatt; TWh: Tera Watt Hour USD: United States Dollar


India is the world's third largest producer and third largest consumer of electricity

Growing population along with increasing electrification and per capita usage will provide further impetus. Power consumption is estimated to reach 1,894.7 TWh in 2022

Total installed capacity of power stations in India stood at 371 GW as of April 2020. Electricity production reached 1,252.61 billion units (BU) in FY20

India is ranked 6th in the list of countries to make significant investment on clean energy by allotting USD 90 Bn ₹


Government Initiative & Policies

• The Government of India is preparing a 'rent a roof' policy for supporting its target of generating 40 GW of power through solar rooftop projects by 2022

• 100% FDI is allowed under the automatic route in the power sector for Generation from all sources (except atomic energy), transmission and distribution of electric energy and Power Trading

• Government plans to establish renewable energy capacity of 500 GW by 2030

• Pradhan Mantri Sahaj Bijli Har Ghar Yojana- Saubhagya was launched by

Government of India with an aim to achieve universal household electrification

• The Ministry of New and Renewable Energy (MNRE) has decided to provide custom and excise duty benefits to the solar rooftop sector, which will lower the cost of setting up as well as generate power.

• The Union Government of India is preparing a 'rent a roof' policy for supporting its target of generating 40 GW of power through solar rooftop projects by 2022

Key Headlines

• In March 2020, the Central Government signed virtual agreement to conclude strategic sales in Kamarajar Port Ltd, THDC India Ltd. and North Eastern Electric Power Corporation Limited (NEEPCO), and it will receive USD 1.93 billion from these deals

• ReNew Power and Shapoorji Pallonji will invest nearly USD 0.11 billion in a 150 megawatt (MW) floating solar power project in Uttar Pradesh

Upcoming Events

• Swicon 2020, Mumbai, 25-26 November 2020

• Renewable Energy India, Noida, 10-12 December 2020

• POWERGEN India New Delhi: 27-29 January 2021

• Elecrama 2022, New Delhi

Bn: Billion; FDI: Foreign Direct Investment; GW: Giga Watt; Mn: Million; MW: Megawatt; TWh: Tera Watt Hour USD: United States Dollar



Industry Performance

CEA: Central Electricity Authority; FY: Financial Year; GoI: Government of India; GW: Giga Watt; NTPC: National Thermal Power Corporation; M&A: Merger and Acquisition; MW: Mega Watt; Q: Quarter; USD: United States Dollar

Source: Tecnova Research, CEA, IBEF, GoI, Industry Reports

India’s solar imports fell by 77% year-on-year (YoY) in the first quarter (Q1) of FY 2021 with USD 151 million compared to USD 650 million during the same quarter in 2019. The primary reason behind the slowdown of import activity was the ongoing COVID-19 pandemic

270 MW Capacity addition was achieved against the target of 306.15 MW in this quarter. The added capacity is Thermal Power Bhadradri TPP in state of Telangana

Currently under 36 GW of Renewable Energy projects are under various stages of installation and additional 30 GW projects are in Pipeline

Custom duty on solar cells and panels have been reduced to 0% from 20% ₹

2.1 GW capacity addition was achieved in Wind Power in FY 2020 compared to 1.48 GW in FY 19

GoI has set an ambitious target of achieving 175 GW of renewable energy capacity by 2022. These include 100 GW of solar capacity addition and 60 GW of wind power capacity. Government plans to establish renewable energy capacity of 500 GW by 2030


Import of Electrical Equipment (in Mn USD)

Export of Electrical Equipment (in Mn USD)

*Import of Electrical Equipment in Q1 FY 21 were significantly impacted due to COVID-19

43 42 34 33

118 114 110

79 59

46 49

123 119

57

88

317

Q1 FY20 Q2 FY 20 Q3 FY20 Q4 FY 20

Capacitors Insulators

Power Transformer Distribution Transformer

51 60 55 61

179 167 173 149

294

184

262

186

317

283

332

295

Q1 FY20 Q2 FY 20 Q3 FY20 Q4 FY 20

Capacitors Insulators

Power Transformer Distribution Transformer

*Export of Electrical Equipment in Q1 FY 21 were significantly impacted due to COVID-19

Number and Value of Deals

Deals by Type for Q1 FY 21

3.1

4.8

3

5

6

5

4.4

4.6

4.8

5

5.2

5.4

5.6

5.8

6

6.2

0

1

2

3

4

5

6

Q3 FY 20 Q4 FY 20 Q1 FY 21

Value of deals (in $ Bn) No. Of Deals



Acquisition 60%

Mergers 20%

Minority Stake 20%


Major Investment • Sembcorp Industries, a Singapore-based energy firm, made an equity infusion

of USD 101.6 million into Sembcorp Energy India

• Hitachi has completed the merger of its joint venture power business unit with ABB Power Grids, known as Power India in July 2020

• Eversource Capital (Everstone and Lightsource) planned to invest USD 1 billion in renewable energy in India through its Green Growth Equity Fund



Capacity Addition

• NTPC announced investment of USD 7.26 billion to add 10 GW solar energy capacity by 2022

• In April 2020, Vikram Solar bagged a 300 MW solar plant project for USD 250.39 million from NTPC

New Launches • Delta Electronics India launched 125kW String Inverter is a cloud-connected

three-phase string solution for cost-efficient decentralized photovoltaic systems for both ground-mounted and large commercial applications

• DeltaGrid® Metering is a highly advanced, flexible, and comprehensive solution that includes meters, field area networking (FAN) modules, data concentrator units (DCU) and HES

Tecnova’s Experience in Energy Industry

• Market opportunity assessment and M&A for European component manufacturer

• Go to Market Strategy for US based component manufacturer


Photo by Winchell Joshua, U.S. Fish and Wildlife Service

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india: performance of energy sector · source: tecnova research, cea, ibef, goi, industry reports...

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