How Energy Companies are Meeting India’s Rising Demand?

India is one of the fastest-growing economies across the globe and has witnessed a rising energy demand over the last few decades. As India’s population has surpassed 1.4 Billion and is constantly increasing, it would …

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India is one of the fastest-growing economies across the globe and has witnessed a rising energy demand over the last few decades. As India’s population has surpassed 1.4 Billion and is constantly increasing, it would become an absolute challenge for energy companies to meet the demand. 

In this blog, we’ll delve deep into how energy companies are innovating and evolving to meet this rising energy demand along with maintaining sustainability and growth. Let’s begin!

How Energy Companies Are Planning for Rising Demand?

Here we’ve mentioned four main ways energy companies are utilizing to meet the rising energy demand in India. 

1. Increased Renewable Energy 

Considering the future demand and constant depletion of non-renewable energy sources, companies are focusing more on expanding non-renewable energy sources, especially solar and wind power.

(i) Solar Power Revolution 

India is largely focusing on utilizing solar power. The country had 85GW of Indian solar power capacity as of the June 2024 quarter. In fact, the Indian government is also helping energy companies with strong policy support. 

(ii) Wind Energy Expansion 

India has secured 4th rank across the globe in wind power generation. Hence, it is also one of the areas of focus for energy companies.  Most of the wind farms are established in the vast coastal regions and windy states like Tamil Nadu and Gujarat. 

In fact, Adani Group has also planned to invest 2 Lakh crores by 2030 to increase overall GW capacities. This has even impacted the share price of Adani Power, which may allow you to take monetary benefits. 

2. Electrification of Transportation 

India is widely adopting EV vehicles in the transportation sector. The advent of EV vehicles may allow India to reduce its dependency on imported oil from Gulf countries. Moreover, it may also reduce air pollution. 

Energy companies are focused on building EV infrastructure in collaboration with automakers and the government. For instance, leading companies like Tata Power and Indian Oil are highly focused on the development of EV charging stations across varied cities. 

These charging stations will be strategically positioned at petrol pumps, shopping malls, and residential complexes so that people may easily charge them. It will significantly increase the adoption of Electric Vehicles (EVs). 

3. Increasing Investments in Natural Gas

Natural gas, such as CNG, is gaining more popularity as a cleaner alternative to coal and other fossil fuels. 

Considering this, Indian energy companies, including ONGC, Reliance, and GAIL are increasingly investing more money in gas-based power generation that emits 50% less carbon dioxide as compared to coal. 

The Indian government has also launched the National Gas Grid project with the aim of connecting new regions to natural gas. This may help in boosting supply and infrastructure development. 

4. Modernizing Coal Power Plants with Cleaner Technologies 

Although renewable energy is growing rapidly, coal is still one of the prominent energy sources. It accounts for 75% of total power generation in India. 

To consistently meet the rising demand and reduce environmental impact, energy companies are focusing on modernizing coal plants with cleaner and more efficient technologies. 

Simply put, coal plants are now being built using supercritical and ultra-supercritical technology. This enables the coal to burn at higher temperatures and pressure, which makes the overall process even more efficient and reduces carbon emissions. 

Moreover, the Indian Government is also promoting CCS (Carbon Capture and Storage) technologies in order to significantly reduce the carbon footprints of coal plants. 

Conclusion

In summary, India’s rising energy demand has presented various challenges and opportunities for energy companies. These newly adopted methods may help India fulfill the increasing need for them. Before investing, check the individual stock price and compare them with their peers via the Nifty index stock price analysis.

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