The Evolving Energy Landscape in India

India will be the fastest growing energy market in the World in the next few decades increasing India’s influence on the World energy scenario. India also offers tremendous investment opportunities for investors in the energy sector. On the occasion of the International Energy Forums (IEF)’s 16th Meeting in New Delhi during 10-12th April 2018, Deloitte Touché Tohmatsu India LLP (as the knowledge partner of the host nation) brought out this report.

The report provides a detailed view of the Indian energy landscape (power, oil & gas, renewable energy), featuring economic overview, megatrends shaping the industry and the opportunity areas for investment across the value chain in the sector. It provides statistics on the current Indian footprint on the world energy map and highlights the fact that India, which is the 3rd largest country by power generation (after the US and China), is likely to emerge as one of the most prominent energy consumers in the world. The country is also experiencing fast growth in oil demand, driven by personal mobility, industrial growth and increased petrochemicals demand. Other external factors driving growth include lower commodity prices, energy security and global geopolitics, stagnation in or negative growth in OECD market. Meanwhile, some of the internal growth drivers include the evolving Indian demographics, rapid urbanisation, and launching of energy efficiency initiatives such as UJALA, Perform Achieve and Trade Scheme (PAT) for Industrial Energy Efficiency, as well as government initiatives such as “Power for All”, UJJWALA, etc. in the country.

On the future outlook, the report highlights the emerging themes and investment opportunities across the energy sector, and focuses on the paradigm shift towards the digital transformation among businesses. Going forward, adoption of technology to improve overall efficiency will be the key focus area for the sector. This would include grid integration of renewables, smart grids and automation, and storage systems, etc. The oil & gas and renewable energy sectors would witness huge investments on account of favourable policies reforming the regulatory landscape. Further, Deloitte opines that a collaborative effort towards greater integration, developing infrastructure and ensuring a conducive fiscal and regulatory landscape will be instrumental in attracting investments across the Energy sector.