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ReNew Power says India requires double the amount of power supply in next 10-12 years

Updated : May 22, 2019 02:58 PM IST

The renewable energy sector in India is abuzz with activity. The sector, despite government’s thrust, the sector has its own set of challenges. Recently, Piramal Enterprises and Canada Pension Plan Investment Board (CPPIB) announced plans of listing India’s first ever renewable energy Infrastructure Investment Trusts (InvIT).

In an interview to CNBC-TV18’s Nisha Poddar, Sumant Sinha, chairman and MD, ReNew Power, said that the sector is shaping up nicely and there are a lot of opportunities in the sector.

“The biggest opportunity by far is the fact that renewable energy has now become the cheapest form of new energy. At sub-Rs 3 a kilowatt hour is significantly cheaper than any other form of new power. In a way that becomes the biggest driver for the growth of the sector going forward. Given the fact that India’s power demand is growing at about 5-6 percent a year, it is quite possible that over the next 10-12 years, we require double the amount of supply of power that we have right now,” he said.

On the challenges for the sector, Sinha said, “Renewable energy currently operates within the overall power sector and in the power sector value chain, there is one fundamental part which is not working very well and that is the distribution company side. Unless we reform the distribution company financials, in the long run that is always going to hold back the overall power sector in the country and that in turn will impact India’s GDP growth rates as well.”
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