The business is de-licensed and offers huge opportunities for merchant plants, regulated plants through competitive bids, captive and group-captive structures. The new procurement regulations reward strategies derived from coal mining and sourcing, equipment procurement, competitive insights, tax planning, tariff design and financing.

Power generation

Recent projects show that investors use a mix of strategies, such as capex planning, advanced metering and outsourcing operations among other services to enhance revenue potential and shorten turnaround time.

Distribution img

The market opportunity is large with a share of renewable energy targeted to go up from 4 to 15% this decade. The power sector is competitive with the entry of new entrepreneurs especially in wind, solar and small hydro. We have advised a number of renewable investors in planning, financing, acquiring, scaling-up and diversifying their renewable energy interests.

Renewable energy

With states looking at network strengthening through private participation, the scope for joint ventures with state utilities, independent generators and renewable energy parks have increased.

Transmission and markets

Government and sector regulators need to enhance investment attractiveness, establish and refine regulations to drive efficiency and equity and strengthen the sector institutions for more effective planning and oversight. The scope for more effective regulation comes from ongoing evolution of industry structure, entry of private capital and management, leveraging technologies such as smart grids, better definition of resource factors and better information availability.

Policy, reforms, and economic regulation

India’s commitment to reducing energy intensity brings together governments, international climate change agencies and the private sector to seek interventions in reducing energy use, demand-side management, standards and labeling and other conservation measures. Large energy users can take advantage of the deregulation of 1 MW plus loads to optimise costs. The future of the power sector in India depends upon tailoring energy strategies based on their captive or contracted supplies, cross-subsidy levies and unscheduled interchange implications, open access routes and retail tariff design.

Energy conservation and strategy

Committed to India

Committed to India: Renewable energy for sustainable development.


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The electricity sector industry in India has evolved significantly to provide a wide range of opportunities across the value chain, in both, the regulated as well as deregulated businesses. India’s power market is the world’s fifth largest in terms of generation capacity and the third largest in terms of network. The growing demand, network extension and upgradation, reduction in energy intensity, unbundling of supply services and growth of cross-border trade present various opportunities for this industry. However, a number of challenges of the power sector in India remain. These include fuel supply, counter-party risk posed by distribution companies, monopoly restrictions on open access and the availability of project finance.

We have been active advisors to the electricity industry since 1991 and associated with many landmark developments over this time. The power sector advisory team has over 150 specialist staff bringing a rich life-cycle experience to our clients planning, developing or scaling their electricity business in India.

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Sambitosh Mohapatra

Sambitosh Mohapatra

Partner and Leader, ESG, PwC India

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