HSBC said India’s power sector has shown early signs of recovery in December after demand softened during October and November, with improving consumption trends reinforcing the medium-term structural growth outlook. The brokerage highlighted that power demand rebounded in early December, supported by seasonal factors and stabilising industrial activity across key regions.
HSBC noted that renewable energy additions remain a major positive, with around 3.3 GW of capacity added in November alone, taking year-to-date additions to approximately 31 GW—a record high for the sector. The firm said the pace of renewable installations underscores India’s accelerating energy transition and reflects sustained execution momentum across solar and wind projects.
A key regulatory development flagged by HSBC was the passage of the SHANTI Bill 2025, which opens nuclear power generation to private participation. The brokerage described this as a significant structural reform that could reshape India’s long-term power mix, unlock new investment avenues and improve baseload capacity reliability. HSBC believes the move could gradually attract private capital into nuclear projects, easing pressure on conventional thermal generation over time.
Overall, HSBC said the combination of recovering demand, record renewable capacity additions and policy reforms strengthens the long-term investment case for the power sector, even as near-term volatility in consumption patterns persists.
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