India Thermal Power Plant Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

India Thermal Power Plant Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The India thermal power plant market is expected to rise at a CAGR of more than 1.6% during the forecast period of 2020-2025. Factors such as the increase in industrial operations and several government initiatives to provide electricity to all people in the country are likely to drive the India thermal power plant market. However, the increasing share of renewable energy in the total energy generation is expected to restrain the India thermal power plant market.

Key Highlights

• Coal-based power plants, due to its abundance in the country in comparison to other energy sources is expected to be the largest segment and is likely to dominate the India thermal power plant market during the forecast period. In 2019, India was the fifth-largest coal producer in the world and fourth largest in the Asia-Pacific region.
• New and efficient technologies like supercritical and ultra-supercritical coal power plants, which reduce the amount of pollution, are expected to replace the aging power plants and will likely create several opportunities for the India thermal power plant market in the future.
• The increasing projects of thermal power plants in the country are expected to drive the India thermal power plant market.

Key Market TrendsCoal Segment Expected to Dominate the Market

• Coal-fired power plants generate energy from the combustion of coal. The country is the fifth-largest coal producer globally and uses most of its coal to produce electricity. In 2019, the country produced approximately 12.73 Exajoules of coal, around 7.59% of the global coal production.
• The country's significant share of energy comes from coal-fired power plants, and factors such as rapidly increasing industrialization and urbanization are expected to drive the thermal power plant market in the country during the forecast period. Moreover, different government schemes such as Power For All are expected to increase the country's power surge and likely to drive the country's thermal power plant market.
• In 2019, the total coal energy consumption in India was 18.62 Exajoules, which was higher than the country’s consumption in 2018, 18.56 Exajoules. The increased consumption of coal exhibits the growing usage of coal in the country. Coal being in abundance and economical for the country is widely used by the power generating companies. India is the second-largest coal consumer after China in the world.
• In 2019, India’s state-owned National Thermal Power Corporation (NTPC) commissioned unit-1 of Khargone Super Thermal Power Station in Madhya Pradesh. Khargone thermal power station is India's first coal-fired ultra-supercritical plant that operates at an efficiency of 41.5% and an installed capacity of 660 megawatts (MW).
• Hence, owing to the above points, the coal segment is likely going to dominate the India thermal power plant market during the forecast period.

Increasing Thermal Power Projects Expected to Drive the Market

• India's power sector is undergoing a wide-scale transformation, owing to the country facing steep electricity demand growth rates. Several parts of India witness high power cuts due to the growing demand for electricity and the supply gap. To address the issue of electricity reliability, the government has implemented policies to increase electricity generation.
• India has the second-largest population, because of which there is a constant increase in the energy demand that requires an increasing number of industrial operations and continually growing demand for power supply in the residential regions of the country are expected to drive the thermal power plant market.
• In 2019, the total thermal energy generated in India was 1261.8Terawatt-Hours (TWh), higher than the energy production of 2018, 1288.8TWh. The country last year in a decade saw a reduction in thermal power. However, the increase in nuclear power generation was seen in the previous year's energy share.
• As of 2019, a nuclear power station Gorakhpur Haryana AnuVidyutPariyojana (GHAVP) Units -1&2 (2X700 MW), was in the advanced stage. Orders were placed last year for long delivery equipment like end-shields and steam generators. The main plant civil work and several other packages are at various stages of tendering. The first phase of the project comprising of two units GHAVP-1&2 (2X700 MW), is expected to be completed in 2025.
• Patratu Super Thermal Power Project, Jharkhand in India, started in 2018 and is expected to be completed in 2022. The project has the capacity to produce 4000 megawatts (MW) of power and is coal-fired. For India, coal has been a significant source of energy 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 thermal power plant market in the country.
• Hence, owing to the above points, increasing thermal power projects are expected to drivethe India thermal power plant market during the forecast period.

Competitive Landscape

The India thermal power plant market is moderately fragmented. Some of the key players in this market include NTPC Limited, Adani Group, Maharashtra State Power Generation Company., Nuclear Power Corporation of India (NPCIL), and India Power Corporation Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
NTPC Limited
Adani Group
Tata Group
Reliance Power Limited
Maharashtra State Power Generation Company.
Nuclear Power Corporation of India (NPCIL)
India Power Corporation Ltd.
Jindal Steel & Power Limited

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