Nomura has projected robust growth for India's power sector, anticipating a compound annual growth rate (CAGR) of over 7 per cent in electricity demand from FY24 to FY27.
According to Nomura, the surge is attributed to accelerating economicactivity, greater electrification, and emerging demand from sectors like datacentres, electric vehicle (EV) charging, and green hydrogen production.
Changing weather patterns, which have recently led to supply deficits, could also add to the growing power demand. In FY25 alone, electricity consumptionis expected to increase by 7.2 per cent year-on-year, reflecting consistent growth from the previous year's 7.1 per cent.
India's significant progress in renewable energy adoption, estimating that renewable energy capacity by 2030, supporting its net-zero emissions goal for for 2070.
FY30, renewables are expected to constitute 55 per cent of total installed capacity helping the nation become a renewable energy leader globally.
Nomura estimates that India's data centre capacity will grow from 960 MW today to between 7.5 GW and 9 GW by FY30, driving power consumption in the sector from 8.4 TWh currently to as high as 80 TWh in a bull case by FY30 .