In 2019, India was the third-largest consumer of oil, accounting for ~5.4% of the global oil consumption. Oil and gas jointly accounted for 36.37% of the country’s overall energy mix in 2019. Oil consumption in India stood at 5,270.73 thousand barrels per day in 2019, and is projected to reach 5,490.92 thousand barrels by 2025, expanding at a compound annual growth rate (CAGR) of 2.25% during the 2020-2025 period.

Production insights:

As of 2019, there were 4.66 Bn barrels of proven oil reserves and 1.33 Tn cubic meters of proven natural gas reserve in India. In 2019, India accounted for ~0.9% of the global oil production and ~0.7% of the global natural gas production. The production of oil and natural gas fell between 2018 and 2019. Low productivity of aging oilfields, coupled with the declining trend of prices led to the decline in production volume in 2019. The oil and gas production is estimated to further plummet in 2020 in wake of the COVID-19 pandemic. Unavailability of workers, movement restriction, low offtake from key consumers, and closure of offshore gas fields are expected to impact the production in 2020. However, the production of natural gas is anticipated to grow over the forecast period, owing to the Indian government’s ambition to reduce import dependency.

Consumption insights:

A rapidly growing population, industrialization, and urbanization contributed to the steady growth of oil and natural gas consumption. India is highly reliant on imports to meet its demand for oil and gas – ~80% of oil demand and ~50% of natural gas demand are met through imports. In 2020, mainly in the second quarter of CY 2020, stringent lockdown measures imposed on account of the pandemic, impacted the demand for oil and gas in the transportation and industrial sectors. The domestic demand is anticipated to recover from the fourth quarter of CY 2020. The consumption of natural gas is likely to surge over the forecast period, owing to the government’s goal to increase the share of natural gas in the primary energy mix.

Market influencers:

The steady increase in population, coupled with the rising income level has amplified the rate of urbanization in the country, which in turn, is fostering the growth of the oil and gas industry in India. Improved infrastructure and ease of doing business have been encouraging the participation of international players, such as BP plc, Saudi Aramco, Abu Dhabi National Oil Company (ADNOC), and Total SA.
The rapid growth of the Indian transportation industry has also bolstered the demand for oil and gas industry in India. Light-duty and heavy-duty vehicles are the leading consumers of oil and gas, followed by aircraft, marine, and rail. Furthermore, the advancement of drilling techniques, equipment, and technology is expected to augment the growth of the Indian oil and gas industry. The application of cutting-edge oil-producing technologies is likely to help in exploring novel unconventional sources rather than relying on depleting conventional sources. However, factors like the declining trend in domestic production, heavy reliance on import, dominance of state-owned companies, and limited infrastructure investments are impeding market growth.

Impact of COVID-19:

The oil and gas industry has been experiencing an unpredicted crisis on account of the two-pronged effect of the international price war and pandemic, which is likely to mark a substantial impact on the domestic market, both in the short and long term. The lockdown led to a sharp dip in mobility, transportation, and industrial activities, resulting in a slump in oil and consumption. Low demand for oil, gas, and refined products is anticipated to create a supply-demand imbalance and a consequent price fall in the near future.
In the long run, the market is predicted to gain momentum; however, an oversupply is likely to be predominant in the global market. Workers laid off as an instantaneous effect of the pandemic, is likely to give rise to labor shortage during the revival phase. The focus of the industry is expected to shift towards low-cost and short-cycle sources over the forecast period. Expansion of innovative segments like shale oil and shale gas, adoption of new business models, and market consolidation are projected to be the long-term trends in the market.

Companies covered:

• Bharat Petroleum Corporation Limited
• Chennai Petroleum Corporation Limited
• Hindustan Petroleum Corporation Limited
• Indian Oil Corporation Limited
• Mangalore Refinery and Petrochemicals Limited
• Numaligarh Refinery Limited
• Oil and Natural Gas Corporation Limited
• Oil India Limited
• Reliance Industries Limited
• Nayara Energy Limited Private

The post Oil and Gas Industry in India 2020 first appeared on CRI Report.

Impact of COVID-19:
The outbreak of COVID-19 has led to severe disruption in the solar energy supply chain since India is highly dependent on China for the sourcing of PV modules. The import of solar modules and cells dropped by 76.4% in the first quarter of CY 2020 as compared to the first quarter of CY 2019. Furthermore, the nationwide lockdown resulted in a halt in construction activities in the second quarter of CY 2020. The Ministry of New and Renewable Energy (MNRE) directed green agencies to consider the pandemic as force majeure (unprecedented events or circumstances beyond human control) and allowed a blanket extension of 30 days beyond the lockdown period for all renewable energy projects.
The interruption in the global supply chain and logistics has created lucrative opportunities for domestic players of the green technology market to enhance the self-sufficiency of the country. The government has stressed on the indigenous production of solar cells, PV components and Lithium-ion battery. The government’s focus to establish India as the manufacturing hub for electric vehicles has been pushed by the supply chain disruption in China, which is currently the leading manufacturer. Furthermore, the major turmoil created in the fossil fuel market during the pandemic has increased reliance on green energy owing to its flexibility and cost-effectiveness.

Companies covered
• Adani Power Limited
• Bharat Heavy Electricals Limited
• Exide Industries Limited
• Suzlon Energy Limited
• Tata Chemicals Limited
• Tata Power Limited
• Thermax Limited
• Ampere Vehicles Private Limited
• Hero Electric Vehicles Private Limited
• Mahindra Electric Mobility Limited

The post Green Technology Market in India 2020 first appeared on CRI Report.

Segmentation insights:
The power sector in India is characterized by its diversified fuel sources which consists of environmentally sustainable sources like solar, wind and small hydro energy, along with conventional sources like coal, oil and gas. Thermal power was the predominant type of installed capacity in India, accounting for 63.5% of the total installed capacity in FY 2019. The commissioning of various Ultra Mega Power Projects (UMPPs) based on thermal power attributed to the largest share of thermal power in the country’s energy mix.
Renewable energy accounts for 21.8% of the total installed capacity in India in FY 2019, and is the second-leading source of energy in the country. The Indian government’s ambitious target of installing 175 GW of renewable energy capacity, coupled with the establishment of solar parks and the solar city program propelled the growth of clean energy in the country. Furthermore, financial incentives offered by the government are likely to encourage state-owned operators to invest in clean energy parks and ultra-mega renewable energy power parks (UMREPPs).
Nuclear and hydro are other prominent sources of power in India. In order to utilize the enormous hydro-energy potential (~600 billion units per annum), the country has set a target to add 1190 MW of hydro capacity (600 MW in the center 379 MW in private sector, and 211 MW in states) by FY 2020. As of FY 2019, India has 6.78 GW of nuclear energy installed, which is operated by the Central government owned Nuclear Power Corporation of India Limited (NPCIL).

Market influencers:
Soaring demand from the industrial and domestic sectors is a major factor driving the Indian power sector. The industrial sector in India expanded significantly over the past few years, marked by the steady increase in the index of industrial production (IIP) for the electricity domain, from 126.6 in FY 2015 to 156.9 in FY 2019. The industrial sector has been the largest power consumer in India, accounting for around 44.1% of the total power consumption in FY 2019. On the other hand, the consumption from the domestic sector increased swiftly at 7.5% during the FY 2010-FY 2019 period. Improved access to electricity, surge in sales of white goods, and spurring demand for LED bulbs have propelled the demand from the domestic sector. Furthermore, supportive government policies such as UDAY 2.0, 24×7 – Power for All, SAUBHAGYA, UJALA Scheme, Green Energy Corridor, and vehicle electrification aided the growth of the Indian power sector.
The constrained supply of raw materials poses a substantial challenge for the Indian power sector. Players are struggling to acquire raw materials for power generation due to inconsistency in domestic coal supply, fluctuation in international coal prices and shortage of natural gas. Furthermore, the weak infrastructure of the transmission and distribution (T&D) system leads to T&D losses, affecting the power sector. The T&D loss in India is around 20%, which is much higher than other Asian countries. Of late, the thermal power sector has been facing challenges on account of environmental issues, tariff structure, and difficulty in acquiring power purchase agreements (PPA).

Competitive landscape
The power sector in India is slowly moving towards consolidation, owing to the presence of established players with a keen focus to expand their businesses through inorganic growth strategies. Small companies, on the other hand, are striving to sustain in the highly competitive market. In September 2019, Adani Power Limited acquired 100% stake of Bikaner Khetri Transmission Ltd (BKTL). Furthermore, NTPC Limited and Adani Power Limited are competing to purchase the stressed power project of Avantha Group. Key players in the thermal power sector include CESC Limited, Jindal Steel and Power Limited, GMR Energy Ltd and Adani Power Limited.

Companies covered
• Adani Power Limited
• CESC Limited
• Damodar Valley Corporation (DVC)
• NHPC Limited
• NTPC Limited
• SJVN Limited
• Suzlon Energy
• Tata Power Limited
• Websol Energy System Limited
• Nuclear Power Corporation of India Limited (NPCIL)

The post Power Sector in India 2020 first appeared on CRI Report.

Solar Rooftop Market Insights

Solar rooftop is the fastest-growing sub-sector of non-conventional energy in India. It is mainly due to its advantageous position in the solar belt (400 S to 400 N) that the country enjoys being one of the best beneficiaries of solar energy. Formulation of favourable government policies, growing awareness about renewable energy sources among the masses, increasing investments, rising cost competitiveness and tax benefits are the major factors driving the industry.

However, limited availability of funds, policy and regulatory hindrances, and non-uniform grid assimilation are the major hurdles to the growth of the market. The industry is moving towards adopting disruptive technologies like artificial intelligence (AI) and machine learning (ML) to leverage operational efficiency.

Solar Rooftop Market Segment Insights

Solar energy comprises more than 30% of the total renewable energy count in India. Ground mounts still constitute a significant portion of the solar energy generation in the country. Industrial users are the major consumers of solar rooftop energy, followed by the commercial sector. Its penetration in the residential sector is considerably less but is expected to grow rapidly, owing to the increasing awareness about renewable energy in the country. Solar Photovoltaic is becoming the largest market for new investors among all non-conventional energy sources.

Government Initiative for Solar Rooftop Market

The government has been formulating several policies to boost solar energy generation in India. The National Solar Mission plans to scale up the renewable power generation to 100 GW by 2022, out of which the contribution of solar power is expected to be of 20 GW. Moreover, the government in the Union Budget of 2018-2019 announced zero import duty on parts used in manufacturing solar panels.

State-wise  Insights of Solar Rooftop Market

The solar rooftop capacity addition has increased from 337 MW in 2015 to 2368 MW in 2019. Karnataka ranked the first in terms of total solar capacity addition (both ground mount and rooftop), followed by Telangana, Rajasthan, Andhra Pradesh, Tamil Nadu, Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh, and Punjab. Gujarat became the leading state in solar rooftop capacity addition in India in 2019 with a total of 261.97 MW of solar rooftop systems installations.

Competition Analysis of Solar Rooftop Market

The industry is dominated by a few major players like Tata Power Solar Systems Limited, Vikram Solar, and Kotak Urja Private Limited. On the other hand, new players like Loom Solar and Mahindra Susten Private Limited are gaining considerable share in the market. Global firms like Trina Solar (the world’s second-largest solar player) have recently entered the solar industry in India.

Companies of Solar Rooftop Market covered 

• Websol Energy System Limited
• Azure Power India Private Limited
• Emmvee Photovoltaic Power Private Limited
• Kotak Urja Private Limited
• Loom Solar Private Limited
• Mahindra Susten Private Limited
• Photon Energy Systems Limited
• Tata Power Solar Systems Limited
• Vikram Solar Limited
• Waaree Energies Limited

Global Renewable Energy Market: By Type (Hydroelectric energy, Geothermal energy, Wind energy, Solar energy and Biomass energy); By End-user (Commercial, Residential and Industrial); and Region – Analysis of Market Size, Share & Trends for 2014 – 2019 and Forecasts to 2030

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