New Delhi ,jan 16
Data centres and electric vehicles (EVs), which currently make up a very small portion of India’s power need, are predicted to contribute to one-third of the growth in power demand by 2035, according to a report by Motilal Oswal.”Electric vehicles (EVs) and data centres account for a negligible share of power demand in India today. Yet, by 2035, we estimate one-third of power demand growth might be attributable to these two sectors,” the report added.The report added data centre capacity in India will compound at 30 per cent over the next decade and assume 60 per cent/20 per cent/20 per cent penetration (in new vehicle sales) for two-wheelers (2Ws), passenger vehicles (PVs) and commercial vehicles (CVs) by the end of this 10-year period. Showcasing the exuberant potential, the Indian power sector has an investment opportunity of Rs 40 trillion, driven by accelerating demand, upgradation and transition to clean energy over the next decade, the report added. The power demand in the country is increasing at a 7 per cent compound annual growth rate (CAGR) compared to 5 per cent previously; old power infrastructure needs to be upgraded or replaced as the electricity mix changes (more RE all day), and India’s goal of 500 GW of renewable energy (RE) capacity by 2030.”India, instead, is a unique case where burgeoning real GDP/per capita growth, technology upgrades and electrification are all strong undercurrents and could continue to drive power demand higher for years to come,” the report added. The report highlighted that with a robust Gross Domestic Product (GDP) growth outlook for India, the new demand drivers such as electric vehicles, data centres, and electrification of energy demand will propel the power consumption to grow at 7 per cent over the next decade.
