New Delhi: The Indian power sector would require an investment of about $250 billion (about Rs12,50,000 crore) in the next eight years for its growth, a report highlighting the emerging opportunities in future electricity markets said.
“Investments of about $250 billion will need to be made in the power sector in the next 8-9 years to fuel planned growth,” a CII A T Kearney study said, adding that there will be demand for over 1,50,000 additional skilled and semi skilled personnel in the sector.
A new era of competition would emerge by the year 2014 leading to the addition 80,000-85,000 MW of new capacity, it said, while the demand for power is expected to grow at a steady rate of 7.5-8% annually till 2017.
The report also highlights new business opportunities in sectors like gas, hydro and nuclear energy.
According to it, the wind energy segment would continue to grow at 15-20% per annum with new opportunities in offshore capacities and large capacity turbines.
“...government incentives will open up opportunities for solar power projects,” it added.
The Power Ministry has set a target to add 78,700 MW of electricity generation capacity during the current five year plan. Currently, India generates about 1.50 lakh MW of power.
While overall the report is cautiously ”optimistic” about the Indian power sector and its ability to support India’s growth aspirations, it states that areas like distribution, financing and manpower are some of the concerns that require immediate attention for its growth.
Effective implementation of next generation reforms, addressing constraints in fuel, financing, distribution and improved access, reach of power and realisation of latent demand will ensure sustained growth of the sector.