Adani Enterp. 2433.65↓-0.30(-0.01%)
Adani Ports 745.40↑6.60(0.89%)
Apollo Hospitals 4940.10↓-10.10(-0.20%)
Asian Paints 3212.75↑13.00(0.41%)
Axis Bank 968.20↑17.35(1.82%)
B P C L 356.15↓-0.65(-0.18%)
Bajaj Auto 4726.25↑16.20(0.34%)
Bajaj Finance 7113.95↑70.75(1.00%)
Bajaj Finserv 1475.10↑16.20(1.11%)
Bharti Airtel 829.45↓-5.05(-0.61%)
Britannia Inds. 4705.40↑22.80(0.49%)
Cipla 972.05↓-2.75(-0.28%)
Coal India 227.80↓-1.90(-0.83%)
Divi's Lab. 3537.90↑75.60(2.18%)
Dr Reddy's Labs 4636.65↑33.10(0.72%)
Eicher Motors 3705.10↑31.85(0.87%)
Grasim Inds 1766.40↑31.90(1.84%)
H D F C 2635.35↓-9.45(-0.36%)
HCL Technologies 1128.60↓-9.70(-0.85%)
HDFC Bank 1599.40↓-5.00(-0.31%)
HDFC Life Insur. 579.70↑5.55(0.97%)
Hero Motocorp 2904.80↑34.20(1.19%)
Hind. Unilever 2691.15↓-4.65(-0.17%)
Hindalco Inds. 415.55↓-4.15(-0.99%)
ICICI Bank 942.10↓-4.65(-0.49%)
IndusInd Bank 1306.00↑4.20(0.32%)
Infosys 1279.00↓-25.50(-1.95%)
ITC 442.80↑2.15(0.49%)
JSW Steel 712.85↑0.70(0.10%)
Kotak Mah. Bank 1959.05↑34.15(1.77%)
Larsen & Toubro 2277.95↑9.65(0.43%)
M & M 1411.20↑15.80(1.13%)
Maruti Suzuki 9736.20↑154.10(1.61%)
Nestle India 21705.40↓-128.75(-0.59%)
NTPC 175.40↑1.30(0.75%)
O N G C 153.65↓-1.75(-1.13%)
Power Grid Corpn 235.30↓-0.30(-0.13%)
Reliance Industr 2479.35↑2.10(0.08%)
SBI Life Insuran 1223.00↑7.60(0.63%)
St Bk of India 585.35↓-1.85(-0.32%)
Sun Pharma.Inds. 1013.80↑5.05(0.50%)
Tata Consumer 792.10↓-0.35(-0.04%)
Tata Motors 555.75↑9.50(1.74%)
Tata Steel 109.00↓-0.40(-0.37%)
TCS 3232.30↓-56.60(-1.72%)
Tech Mahindra 1086.25↓-23.10(-2.08%)
Titan Company 2881.45↑25.75(0.90%)
UltraTech Cem. 8109.55↑227.55(2.89%)
UPL 694.00↑4.00(0.58%)
Wipro 399.95↓-4.25(-1.05%)

Brighter prospects ahead for power sector stocks amid economic momentum

Though there are a few monitorables, rising consumption should drive up volumes, investment

A trigger for the current crisis was power plants shutting down because of heavy losses on buying expensive coal and selling into a highly regulated electricity market

Premium

Thermal generation remains the single largest contributor and Coal India and Neyveli Lignite (NLC) are likely to be beneficiaries of this

3 min read Last Updated : Feb 28 2023 | 10:39 PM IST

Power consumption is closely linked to economic activity and the data indicates that power consumption is likely to rise substantially through FY24 and also in Q4 of FY23. Power consumption in January 2023 rose by a huge 18.4 per cent year-on-year (YoY) and 6.2 per cent month-on-month (MoM), albeit on a low annual base (January 2022 was up only one per cent YoY).

If this trend continues, there will be an investment focus on utilities and the power supply chain. Investors will also have to study the expansion of receivables up and down the chain, since the sector has a persistent problem with outstanding dues from state utilities, and since this has a political component, it could be hard to deal with it, in a year with multiple elections. That apart, the power sector should see steady rise in generation volumes.

India’s current installed capacity of hydropower, thermal and renewable energy (RE) stood at 46.8 Gw, 235.8 Gw and 1