Power and energy demand have grown at a sizzling rate in 10MFY24. This is driven by several structural factors, as also changing demand patterns. This buoyancy could continue, in some measure, in the future as well, owing to the aforementioned structural reasons, coupled with new drivers of demand, such as green hydrogen and electric vehicles. To meet this challenge, pace of addition of renewables, especially utility solar, will have to pick up. Thermal will continue to contribute substantially, especially to peak demand, even by FY30. The sector could see a flurry of activity, as stuck plants are revived, and more deals get executed. This activity will need gargantuan funds to the tune of Rs. 33 trn till FY30. A substantial chunk of this would be funded by banks, in addition to major DFIs. Together with monetisation of operational assets and equity listing of renewable arms, it will ensure a multi-pronged funding approach to quench the big need.
