Power EPC Market in India to grow by $13.30 Bn from 2021 to 2026: Report

The potential growth difference for the power EPC market in India between 2021 and 2026 is USD 13.30 billion, according to the Technavio report.

The power EPC market share growth in India by the private segment will be significant for revenue generation. The increasing number of industrial operations and growing demand for power supply in the residential regions of the country are expected to drive the power EPC market, said the report.

Technavio, a global technology research and advisory firm, has released its latest report titled ‘Power EPC Market In India by End-user (private and government) and Application (non-renewable and renewable) - Forecast and Analysis 2022-2026’.

As per the report, the key factor driving growth in the power EPC market in India is the increasing investments in renewable energy. 

The global energy mix has changed significantly over the past two decades. Improvement in energy efficiency played a vital role in balancing the energy supply and demand, it added.

According to Information and communication technologies (IEA), the share of renewables in global electricity production was 23.9 per cent in 2017 and is expected to reach 29.4 per cent by 2023.

The total cost of generating power using renewables is relatively higher than conventional sources. However, renewable technology is evolving and is competing with fossil fuel-based power plants, it further said.

Renewable power generation capacity has increased over the past few years, posting a CAGR of 17.33 per cent between FY 2016-2020.
With the increased support of the government and improved economics, the sector has become attractive for investors.

On the Indian market, the report said, as India looks to meet its energy demand on its own, it is expected to reach 15,820 TWh by 2040, and renewable energy is set to play an important role. This growth will attract investments in renewables in the country, thereby boosting the power EPC market in India during the forecast period.

However, there’re a couple of challenges cited in the report including - the decline in crude oil prices, which will be a major challenge for the power EPC market in India during the forecast period.

The report mentioned that Biomass is a sustainable replacement for fossil fuels for the generation of power. The abundance of biomass feedstocks makes biomass a preferred energy source over many other energy sources. However, the increase in the prices of feedstocks will slow down the growth of the global biomass power generation market, the report added.

In addition, crude oil prices witnessed a steady decline since 2015. As crude oil accounts for a larger share in power generation, a decline in crude oil prices will impact the adoption of biomass power EPC in India.