HSBC has highlighted an improving trend in the power sector, with demand growth turning positive in November and accelerating in December after declining year-on-year during August-October. This recovery comes against a backdrop of a low base from last year due to relatively muted winter conditions.
The brokerage noted that 12 GW of renewable energy projects with storage were auctioned in CY24, signaling strong momentum in the renewable energy segment. Additionally, 28 GW of renewable energy (RE) capacity was commissioned in the first 11 months of CY24, including 2.3 GW in November. HSBC expects another 3-5 GW of thermal capacity to come online by FY25, further supporting power availability.
On the pricing front, HSBC observed relatively low average prices on the Indian Energy Exchange (IEX), which stood at ₹3.5-₹3.7 per unit in November and December, reflecting stable supply conditions.
The analysis underscores the sector’s gradual recovery, driven by improving demand, renewable energy investments, and stable pricing trends, presenting a positive outlook for the power industry.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
