The India Power
EPC Market is anticipated to grow at a robust rate in the forecast period, 2024-2028.
In India, Power EPC systems are commonly utilized to create power from various
resources, both renewable and non-renewable. These contracts are
"turnkey," meaning that an external contractor takes complete
responsibility for designing and constructing the power generation units to the
client's specifications. The contractor oversees the project from the initial
development phase to the final fabrication of the facility, which is ready for
operation.
On the other
hand, India's power industry is undergoing a significant shift as a result of
the nation's rapid increases in electricity demand. Several parts of India
experience frequent power outages because of rising electrical demand and a
supply gap. The government has set regulations into place to increase power
generation, transmission, and distribution to address the issue of reliability.
It is anticipated that initiatives like the Integrated Power Development Scheme
(IPDS) and Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) will increase
electrification across the country. 100% FDI (Foreign Direct Investment) allowed
in the India power sector has boosted FDI inflow in this sector. From April 2000
and June 2022, the electricity sector saw a total FDI infusion of USD 16.39
billion.
Growing
demand for electricity & increasing contracts in the India EPC Market
The India power
EPC (Efficient Power Conversion) market is experiencing significant growth due
to the country's increasing demand for electricity to support its rapidly
expanding population and economy. For instance, India saw a rise of 10.67%
YoY with electricity generation (including renewable sources) of 846.18 BU
between April and September 2022. The Ministry of Power's data shows that
India's power consumption rose 1.64% YoY to 114.64 BU in October 2022. The
market is characterized by a rising investment in the creation of power
generation facilities that utilize both renewable and non-renewable sources of
energy. For instance, from 2005 to 2050, numerous energy strategies will employ
scenarios that will primarily include the adoption of renewable energy sources
and investments in energy-saving technology to cut CO2 emissions by up to 50%.
As of February 2023, more than 174.53 Giga Watts of renewable energy have been
installed in India over the previous 8.5 years, accounting for 42.5% of the
nation's total capacity (including big hydro). India saw the highest year with
the growth of 9.83% for renewable energy additions in 2022.
The demand for
consistent energy supply is being driven by the growing digitization and
dependence on power-operated equipment in various critical industries. EPC
contracts are favored in India due to the contractors' expertise in creating
more efficient production units. The contractors have access to the best
subcontractors, raw material vendors, cost-effective procurement channels,
specific technological tools, and human resources. For instance, electricity
utilization increased by 8% in 2021 to 1282 TWh, after a 6.7% contraction in
2020. It grew rapidly over 2010-2019 (7%/year). Hence the India EPC Market is
anticipated to register a high CAGR during the forecast period.
Patratu
Super Thermal Power Plant Project
India is also
investing heavily in the development of EPC Power projects, which is expected
to further fuel growth of the India Power EPC market. Overall, the India power
EPC market presents lucrative opportunities for investors, contractors, and
vendors in the power generation industry. In Jharkhand, Patratu Super Thermal
Power Plant’s construction began in 2018 and is expected to be completed in
2023. The project, which burns coal, is expected to have a 4000 MW power
capacity. In 2018, BHEL (Bharat Heavy Electricals Ltd) was awarded a contract
of USD1423.4 million (INR 11,700 crore) for the construction of Jharkhand's
phase 1 (3x800 MW) of a supercritical thermal power plant. India, coal has been
a substantial energy basis in the past and still holds a considerable share in
the country's energy generation sources. This is expected to have a positive
impact on the power EPC market in the country.
The
government's initiative for the “Smart Cities” Mission to upgrade and develop
various infrastructure for selected cities throughout the nation, where
efficient energy management solutions and energy storage solutions are required
for improvement, redevelopment, extension of various utilities, infrastructure,
and transportation developments are the factors driving the market growth in
the forecast period. Moreover, according to the mission's standards, 80% of the
buildings in smart cities must be energy-efficient with a "green
building" design, and 10% of the energy needs of a smart city must stand
satisfied by solar energy. Owing to which the market is expected to register a
high CAGR during the forecast period.
Growing
Trend of Digitalization & Solar Energy Utilization in Power Sector Fueling
the Market Growth
This trend of
digitalization of the energy models offers superior efficiency and is also
growing in value. The modernization of EPC processes allows for connecting and
coordinating all the network's equipment and devices, which is central to
greater efficiency gain. Moreover, communication with smart power grids could
be made possible by a building's digital connectivity.
In order to
develop numerous ICT and internet of things (IoT) solutions that aid in
maintaining and optimizing the infrastructure in smart cities, a stable power
supply is required. However, combining energy storage with renewable energy
sources like solar power would make it possible for the structures to have a
constant supply of electricity. These activities will therefore increase the
India power EPC market during the projected period.
Additionally,
the Ministry of Power, through the Bureau of Energy Efficiency (BEE), has
started several energy efficiency initiatives in the areas of residential
lighting, commercial buildings, and equipment standards.. Owing to which the
demand for EPC is growing rapidly during the forecast period.
Rising Cost
of Energy Generation in India
India presently
loses 0.4% of its GDP due to power outages. Backup energy sources (mostly
diesel gensets) and arrange production operations based on power shortages in
their location are required. Due to the scarcity of traditional energy sources,
cost of energy generation has also been rising significantly and is predicted
to continue to rise in the future. Therefore, above mentioned factors are
restraining the growth of the India power EPC the forecast period.
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Market Segmentation
The India Power EPC Market is divided into Type, Component, Region and Competitive Landscape. Based on Type, the market is further divided into Thermal, Oil & Gas, Renewable, Nuclear, and Others. Based on Component, the market is divided into Engineering Design, Procurement, and Construct. Based on Region, market is divided into North, West, South, East.
Market player
Major players operating in India Power EPC Market are Bharat Heavy Electricals Limited, Larsen & Toubro Limited, Tata Group, Sterlite Power Transmission Limited, Doosan Corporation, BGR Energy Systems Ltd, Alstom SA, Sterling and Wilson Solar Ltd, Reliance Infrastructure Ltd (Reliance Group), MECON Limited.
Recent
Developments
- In 2019, the Gorakhpur Haryana Anu
Vidyut Pariyojana (GHAVP) Units 1 and 2 (2X700 MW) nuclear power plant was
going to be completed.
- In 2019, Sterlite Power obtained a
letter of award for two significant interstate projects, Udupi-Kasargode
and WRSS 21 (Part B), involving lines and GIS substations, totaling more
over USD365 million (INR 3000 crore).
- The Udupi-Kasargode project is
essential for facilitating smoother electricity flow from Karnataka's
Southern Region States to Kerala and decongesting the ISTS transmission
corridor. On the other side, the Gujarati GEC project of Lakadia-Vadodara
(WRSS 21 - Part B) is projected to link the wind energy zones of the Bhuj
region to the load centers of Gujarat and Maharashtra.
- Khargone Super Thermal Power
Station in Madhya Pradesh's unit-1 was officially opened in 2019 by
India's state-owned National Thermal Power Company (NTPC). India's first
ultra-supercritical coal-fired plant, the Khargone thermal power station
has a 660-megawatt installed capacity and a 41.5% efficiency (MW). Larsen
& Toubro Ltd (L&T) and Sterlite Power Grid Ventures Limited are
the projects' major contractors.
- In November 2022, Tata Power
Renewable Energy Limited (TPREL), a Tata Power subsidiary, received the
"Letter of Award" (LoA) from the Maharashtra State Electricity
Distribution Company Limited (MSEDCL) to construct a 150 MW solar project
in Solapur, Maharashtra.
- SJVN Limited started operating its
75 MW solar power project in the Parasan Solar Park in Tehsil Kalpi,
District Jalaun, close to Kanpur, Uttar Pradesh, in October 2022.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018–
2021
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Estimated Year
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2023
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Forecast Period
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2024
– 2028
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Quantitative Units
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Revenue in USD Million, and CAGR for 2018 -2022
and 2023 – 2028
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Report coverage
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Revenue
forecast, Company Share, growth factors, and trends
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Segments covered
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Type
Component
Region
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Region
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North,
West, South, East
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Key companies profiled
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Bharat Heavy
Electricals Limited, Larsen & Toubro Limited, Tata Group, Sterlite Power
Transmission Limited, Doosan Corporation, BGR Energy Systems Ltd, Alstom SA,
Sterling and Wilson Solar Ltd, Reliance Infrastructure Ltd (Reliance Group),
MECON Limited
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Customization scope
|
10% free report
customization with purchase. Addition or alteration to country, Region al
& segment scope.
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Pricing and purchase options
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Avail customized purchase options to
meet your exact research needs.
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Delivery Format
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PDF and Excel through Email
(We can also provide the editable version of the report in PPT/Word format on
special request)
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Report
Scope:
In this report,
India Power EPC has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- India Power EPC Market, By Type:
- Thermal
- Oil & Gas
- Renewable
- Nuclear
- Others
- India Power EPC Market, By
Component:
o
Engineering
Design
o
Procurement
o
Construct
- India Power EPC Market, By Region:
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in India Power EPC Market.
Available
Customizations:
Tech Sci
Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
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Power EPC Market is an upcoming report to be released soon. If you wish an
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