The power sector is witnessing a new growth cycle, with demand from diversified pools, shifting from volume to value, according to brokerage firm Anand Rathi Share and Stock Brokers.
In a latest report released on 6 October, Anand Rathi underscored that power capacity could grow at 7.7% CAGR through FY36E, largely led by solar at 13% and wind at 10.7%.
The brokerage firm expects renewable energy to contribute a larger share of power generation, noting that its share of installed capacity may rise from 53% in FY26 to 70% by FY36e, while thermal capacity may fall from 47% to 30%.
"The faster growth in renewable generation should continue to gradually reshape the generation mix as generation is expected to grow at 6.9% CAGR through FY36E," Anand Rathi said.
"Thermal capacity grows at just 3% CAGR through FY36E, while thermal generation grows at 3.7% CAGR. Its share of generation is estimated to fall from 71% in FY26 to 52% in FY36E, though it remains the largest source of power generation," said the brokerage firm.