Report on Power Sector_May’24: Equity Raises to Power Up to Meet Capacity Surge

The present report delves into the root cause of surging energy and power demand. Identifying these as increasing vagaries of weather and new sources of electricity, it reckons that this growth is durable, and could well overshoot estimates. Giving an overview of the supply additions in FY24, it estimates that the thermal PLF for FY25 will show an uptick, even as capacity additions continue. Further, it calls for a much higher pace of renewable additions to meet future requirements. Finally, it dissects the funding landscape for power projects and investigates whether some of the incremental debt funding shall be picked up by banks and bonds, in addition to key PFIs. Analysing the growing green portfolios of key PSUs, it provides an estimate for the equity value which could be unlocked by hiving off these capacities