Utilities share price target

India water & wastewater treatment market expected to grow at CAGR of 6.2% (2023 to 2033) to reach $23.8 Bn. in 2033 from $13 Bn. in 2023 (Source: Marketysers Global Report | Denta Water & Infra Solutions Ltd.)

India's power generation capacity grew 4% YoY in October to ~425GW, with solar energy topping the additions at 10.4GW

Indian transmission needs a makeover to accommodate higher proportion of renewables. The new grid is likely to have 500GW (+340GW) of RE capacity by 2030 (as per government targets). Essentially, this entails building a grid to evacuate power from these RE projects worth Rs2.5trn – equivalent to building the current grid.

The Indian solar capacity to reach 100GW in a year from 68GW currently; further ramp up to 280GW likely by 2030

Efforts towards reaching 500GW of non-fossil fuel based installed capacity by CY30, as well as setting up more conventional capacity to cater to the expected doubling of power demand by the same year is expected result in a capex super cycle in the power sector over the next decade.

All-India power demand remained high during Q2FY23, boosting thermal PLFs and power sale by discoms.

The MoPNG (Ministry of Petroleum & Natural Gas) has notified the price for domestic
gas production for Oct 2022-March 2023 (link) and the price ceiling for domestic production from difficult fields (link).

The Central Electricity Authority’s (CEA) recently released Draft National Electricity Plan
(NEP) for power generation for the period FY23-FY27 projects >466GW of net capacity
addition over the next 10 years.

SR inter-region transmission capacity is expected to increase from the current 5,900MW to 6,900MW within a year. No major load shedding; Telangana increases agriculture supply to 9 hours...

SR inter-region transmission capacity is expected to increase from the current 5,900MW to 6,900MW within a year. No major load shedding; Telangana increases agriculture supply to 9 hours...

The Union Cabinet has approved the amendment to the National Tariff Policy.The policy acts as a guideline to SERC and CERC while developing regulations. The objective of the amendmentistoensure(1)electricityforall,(2)efficiencytoensureaffordabletariffs,(3)...

The new norms have allowed projects to be bid out under BOO (Built, Own and Operate) model as against earlier norms that required projects to be bid out under DBFOT (Design, Built,Finance,OperateandTransfer).Wehighlightlendershadexpressedconcernonearlier...

Our take: With tariff hikes in FY15 lower than FY14 by stressed states, losses should increase.However,thiswouldbeoffsetbyfallingpowerpurchasecostsandacorrectionin fuelcost.Aggressivemeasuresareneededtoaddresstheissueofdiscoms'stressedbalance...