Balancing Growth with Decarbonisation
Published on15 AUG 2023
Topic:
India's electricity sector is undergoing a generational shift as the country attempts to grow and decarbonize simultaneously, according to Goldman Sachs Research. The analysts foresee the beginning of a peak power deficit cycle, increasing the importance of storage-backed round-the-clock renewable energy (RTC RE). The viability of RTC RE in certain use cases will provide an economic incentive for transition, and unlock a superior business model for utilities. The need to balance energy security along with the transition would result in a premium for pumped hydro storage (PSP) capacity, while an upside risk to our analysts’ and the government’s coal capacity targets could lead to a valuation re-rating of legacy thermal businesses.
