India's energy demand expected to rise 2.5 times by 2047- Report

 

Recently I made an analysis about shares of Tata Power . There I spoke about rise in energy demand in the country due to rise in population and urbanization. When I searched deeper about the topic I found an article by Economic Times. It highlighted about the expectations of the country's future energy demand which might increase 2.5 by 2047. Let us dig deeper about that news article and we can make an analysis in this blog article. 

What is said in the news article?:

As of now, India's 84% of the energy comes from coal. But, India is aiming to reduce its carbon emissions by half [51%] by the year 2047. In exact terms of the article, the country aims at reducing 686 million tonnes of carbon emissions by 2030 out of which 250 million tonnes of reduction in carbon emission is targeted to be acheived from industries with specific focus on steel, cement, paper & pulp petrochemical and aluminum. For achieving this focus on energy efficiency and demand electrification is highly necessary. 

Further the article adds that, decarbonisation, adoption of clean fuels, digitalization and promotion of sustainable buildings and smart appliances are the key areas to be focused for enhancing energy efficiency. 

Analysis of the article:

From the article it is clear that India is aiming to achieve a sustainable future. So it would definitely support and boost renewable energy generation and distribution in the country. Even we could see that power companies like Tata Power are adopting green energy. 

However in the article we saw that, presently 84% of the country's entire energy is produced by coal. That was the reason why I talked about the importance of investing in coal based companies companies like CIL and NTPC. It is because for next two to three years it is impossible for the country to power the country only with renewable energy like solar and wind. 

But one thing is sure, all the power companies that adopt solar energy either for generation or for distribution will give a good returns in next 7 years. Don't think it as a prediction 😁 but I just said my personal opinion. 

Disclaimer:

Donot take any investment decisions based on this blog article. I request my readers to do their own research or consult with a SEBI registered advisor to pick right stocks or select other investment options.