Report Overview

The increasingly high demand for energy across the country and the government’s supportive initiatives are projected to propel the expansion of the India Power EPC Market during the forecast period between 2023 and 2029.

India Power EPC Market - Industry Trends & Forecast Report, 2029

The India power EPC (Engineering, Procurement, and Construction) market size was estimated at USD 13.8 billion in 2022. During the forecast period between 2023 and 2029, the size of India power EPC market is projected to grow at a CAGR of 21.94% reaching a value of USD 45.36 billion by 2029. Major growth drivers for the India power EPC market include the growing industrial operations and the increasing number of government initiatives focused on providing electricity to every citizen in the country. Also, India power EPC market is further expected to be primarily influenced by the conventional thermal segment, encompassing coal, natural gas, and oil-based power generation, constituting approximately 62.2% of the nation's total energy capacity. However, advancements such as supercritical and ultra-supercritical coal power plants, combined with government endeavors to augment renewable energy sources, are expected to unlock numerous opportunities in the forthcoming period. This is further reinforced by the escalating number of power-related projects within the country, driving the India power EPC market's growth during the forecast period.

India Power EPC Market – Overview

The India power EPC market refers to the sector in India that involves the Engineering, Procurement, and Construction (EPC) of power generation and distribution infrastructure. This market encompasses the planning, design, procurement of equipment and materials, and the construction of power plants, electrical grids, and related facilities necessary for the generation and distribution of electricity in India. It is a crucial sector that plays a vital role in meeting the energy needs of the country and is characterized by various technologies and sources, including conventional thermal power, renewable energy sources, and other innovative solutions. The India power EPC market involves a wide range of projects aimed at ensuring a reliable and efficient power supply to meet the growing energy demands of the nation.

India Power EPC Market

Growth Drivers

Rising Energy Demand

The escalating energy demand in India is a key driver propelling the growth of the India power EPC market. With the Central Electricity Authority (CEA) projecting a shift towards renewable energy sources and a decrease in thermal energy, there is a pressing need for infrastructure development to meet this demand. The government's ambitious plans to establish 500 GW of renewable capacity by 2030 and significant investments through the National Infrastructure Pipeline further underscore the market's expansion. This surge in energy demand, accentuated by increasing economic activity, presents substantial opportunities for the India power EPC market, making it a thriving sector in the nation.

Restraints

Regulatory Challenges

The India power EPC market faces significant constraints due to regulatory challenges. The complex and evolving regulatory environment in the country can hinder the smooth execution of power projects. Delays in obtaining approvals, navigating through intricate compliance procedures, and coping with shifting policies can pose substantial roadblocks for market players. These regulatory hurdles often result in project delays, increased costs, and uncertainties for investors and developers. Consequently, the India power EPC market may experience constraints in its growth potential as it contends with the intricacies of the regulatory landscape, which can impact project timelines and overall market stability.

Impact of COVID-19 on India Power EPC Market

COVID-19 pandemic adversely affected the India power EPC market. It disrupted supply chains, leading to delays in project execution and increased costs. Lockdowns and restrictions hampered labor availability, affecting construction activities. Financing challenges emerged as economic uncertainties prevailed. However, the crisis also accelerated the adoption of digital technologies and remote monitoring, enhancing project efficiency. The government introduced relief measures, such as deadline extensions, to mitigate the pandemic's impact. While the short-term challenges were significant, the long-term resilience of the India power EPC market was bolstered by adaptation to new norms and a focus on sustainable, technology-driven solutions.

India Power EPC Market

Segmental Coverage

India Power EPC Market – By Power Generation

By power generation, the India power EPC market is divided into Thermal, Hydro, Nuclear, and Non-Hydro Renewables segments. The thermal segment holds the highest share in the India power EPC market by power generation. Conventional thermal power plants, reliant on fossil fuels like coal, oil, and natural gas, constituted 78.05% of India's electricity production in 2019, with coal-fired power contributing 72.97%. This predominance is driven by increasing industrialization, urbanization, and government initiatives like "Power For All." As of July 2020, India's total power generation capacity stood at 371.97 GW, with conventional thermal capacity at 62.2%. The commissioning of ultra-supercritical plants like Khargone marked a significant technological leap. Projects like the Patratu Super Thermal Power Project further illustrate coal's importance in India's energy mix. Consequently, the India power EPC market is poised to be predominantly influenced by the conventional thermal segment in the forecast period.

India Power EPC Market – By Power Transmission and Distribution

Based on power transmission and distribution, the India power EPC market is bifurcated into Distribution Infrastructure and Transmission Infrastructure segment. The transmission infrastructure segment holds a higher share in the India power EPC market by power transmission and distribution. Notably, the government's "power for all" initiative has prioritized the enhancement of the transmission and distribution network to ensure electricity reaches more areas, stimulating growth in the transmission segment. As power generation capabilities are not evenly distributed across the country, there's a growing need for an integrated system planning approach in the transmission sector to efficiently manage and balance the distribution of electricity. These combined factors have propelled the transmission segment to a higher share in the India Power EPC market.

India Power EPC Market – By Region

Regionally, the India power EPC market is divided into North India, South India, East India, and West India.

Competitive Landscape

Major players operating in the India power EPC market include Bharat Heavy Electricals Limited (BHEL), Larsen & Toubro Limited, Tata Group, Sterlite Power Transmission Limited, Doosan Corporation, BGR Energy Systems Ltd, Alstom SA, Sterling and Wilson Solar Ltd, Reliance Infrastructure Ltd (Reliance Group), and MECON Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2023 - Larsen & Toubro (L&T) Energy-Power secured an Engineering, Procurement, and Construction (EPC) order from West Bengal Power Development Corporation to set up wet Flue Gas Desulphurisation (FGD) systems at its thermal power plant in Sagardighi, West Bengal. The project, a first for L&T from a state-owned power utility, includes three FGD absorbers for four thermal power units and balance of plant systems for five units. The move aligns with government efforts to reduce sulphur dioxide emissions in thermal power plants, adding to L&T's growing portfolio of FGD projects totaling over 19 GW capacity. L&T also recently won a contract for a bridge project in Mumbai.

• In June 2023 - Kalpataru Power Transmission Ltd (KPTL) and its international subsidiaries secured orders worth INR 2,477 crore, which contributed to a marginal increase in Kalpataru's share price. These orders encompass INR 1,181 crore in the transmission and distribution (T&D) sector in both domestic and international markets, while also involving Engineering, Procurement, and Construction (EPC) projects worth INR 1,296 crore in the water business.

• In June 2023 - Waaree Renewable Technologies Ltd (WRTL), a key player in renewable energy EPC, secured the Engineering, Procurement, and Construction (EPC) contract for a 6.5 MWp (DC) / 5 MW (AC) solar project in Chhattisgarh, developed by a prominent Steel and Power Conglomerate. WRTL will manage the entire EPC process and undertake operation and maintenance (O&M) for 5 years post-commissioning. The generated power, transmitted at 33 kV, will enhance the 33 kV Switchyard.

• In November 2022 - Tata Power's subsidiary, Tata Power Renewable Energy Limited (TPREL), was granted the "Letter of Award" (LoA) by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the development of a 150 MW solar project in Solapur, Maharashtra.

Scope of the Report

By Power Generation

• Thermal

• Hydro

• Nuclear

• Non-Hydro Renewables

By Power Transmission and Distribution

• Distribution Infrastructure

• Transmission Infrastructure

By Region

• North India

• South India

• East India

• West India