India’s power sector will require about $250 billion investments over the next eight-nine years if it wants to grow at a moderate 7.5-8 percent compound annual rate, according to a CII report.
‘The power markets will have to achieve consistent high growth rates to bring our per capita consumption to comparable levels of some of the other developing countries like China and Brazil,’ said the report, jointly prepared by the Confederation of Indian Industry and consulting firm AT Kearney.
The report, however, is upbeat about the prospects of the power sector.
‘A new era of ‘Power on Power’ competition will emerge by 2014 that will bring in at least 80-85 GW of new capacity,’ said Kaustav Mukherjee, a partner at AT Kearney.
According to the report, there will be increased interest in generating electricity through gas, hydro and nuclear energy, but coal would continue to be the dominant fuel used in generation. Renewable sources of energy will also start contributing more towards power generation, it added.