Power Sector to Power India Economy:
Total installed power capacity in the country at the end of 10th Plan is 132330 MW. This comprises 34, 654 MW nuclear capacity and 7761 MW capacity for renewable energy.
The main three generation entities i.e. Central, State and Private contribute 35%, 52% and 13% to this installed capacity respectively. This generation capacity, however, is not enough to satisfy the demand within the country.
India is currently facing a 13% deficit. Due to increasing industrialization, changing lifestyles, and higher penetration of electricity distribution, demand for electricity is likely to grow at more than 10% every year during next decade.
To meet this demand government has set a target of adding 78, 577 MW of power generation capacities under 11th Five year plan.
Further addition of 82, 000 MW is envisaged in 12th Five year plan. India is likely to add 1, 60, 000 MW of power generation capacity in next 10 years.
So those companies which are directly or indirectly related to Power sector are expected to benefit from the emerging opportunities in the sector in the days to come.
In the renewable energy sector (where the present Finance Minister) has come up with lot of reforms and new additions, in the rerecent budget) power generation from wind has emerged as one of the most successful initiatives making meaningful contributions to the overall power requirements of different States.
The Solar Energy is also expected to contribute significantly in the days to come due to new provisions of the Budget.
However, research indicates that the total installed capacity of power from renewable today stands at nearly 1350 MW, with contribution from wind power of nearly 1000 MW. Wind power installations worldwide have crossed 78, 728 MW producing about 54 billion KWh of energy annually while India is now the fourth largest wind power generator in the world after Germany, USA and Spain.
In the renewable energy sector (where the present Finance Minister) has come up with lot of reforms and new additions, in the rerecent budget) power generation from wind has emerged as one of the most successful initiatives making meaningful contributions to the overall power requirements of different States.
The Solar Energy is also expected to contribute significantly in the days to come due to new provisions of the Budget.
However, research indicates that the total installed capacity of power from renewable today stands at nearly 1350 MW, with contribution from wind power of nearly 1000 MW. Wind power installations worldwide have crossed 78, 728 MW producing about 54 billion KWh of energy annually while India is now the fourth largest wind power generator in the world after Germany, USA and Spain.
Therefore, the stocks in the renewable energy space (With the crude oil again threatening to touch $92 per barrel) XL Telecom and Energy Ltd, Energy Development Company Ltd, Moser Baer, Suzlon Ltd, Southern Online Bio Technologies Ltd, Decolight Ceramics Ltd, NEPC India Ltd, etc. could be stocks to watch in the near future.
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