- Centrum Broking initiates coverage on India's power sector with a buy on four renewable firms
- Renewables to dominate capacity additions, targeting 500 GW non-fossil capacity by 2030
- Suzlon offers highest return potential amid operational recovery and wind order inflows
Domestic brokerage Centrum Broking has initiated coverage on India's power sector with a strong bias toward renewable energy companies, highlighting a structural upswing in demand along with supportive policy measures. The firm has begun coverage on NTPC Green, ACME Solar, Waaree Energies, and Suzlon, assigning “Buy” ratings to all four.
Centrum notes that India's power sector is entering a multi‑year expansion phase, with electricity demand projected to grow around 6% CAGR over the next decade. Key drivers include rapid urbanisation, rising industrial activity, growth in electric vehicles, and higher cooling loads. Peak power demand, already above 250 GW, is expected to surpass 320 GW by 2030, reinforcing the need for large‑scale additions across generation, transmission, and storage.
Suzlon shows the highest potential return, reflecting expectations of continued operational recovery and robust wind‑energy order inflows.
Renewables to Drive Future Capacity
The brokerage expects renewable energy to remain the backbone of India's capacity additions, aligning with the national target of ~500 GW non‑fossil capacity by 2030. Solar continues to dominate due to cost competitiveness, while wind is regaining momentum with hybrid projects and improved turbine technologies. Renewable tariffs also remain competitive versus conventional power, supporting long‑term adoption.
A major trend highlighted is the transition from standalone solar or wind projects to hybrid and firm dispatchable renewable energy (FDRE) models. By combining solar, wind, and storage, these solutions can deliver more predictable round‑the‑clock power, enabling higher tariffs and improving revenue visibility. This shift is expected to boost returns and earnings stability for developers.
Energy Storage: Next Major Growth Engine
Energy storage is emerging as a critical component in the renewable ecosystem. India may require nearly 60 GW of storage capacity by 2030 to support grid stability and manage peak loads. Falling battery prices and government support are making storage projects increasingly viable, opening new opportunities for companies across the sector.
Centrum believes renewable‑energy valuations remain appealing following recent corrections in select stocks. With strong policy backing and robust long‑term earnings visibility, the sector offers a compelling risk‑reward profile.
The brokerage's “Buy” calls reflect differentiated positioning across the value chain — from developers to manufacturers and wind turbine players.
- NTPC Green: Strong parentage and execution visibility
- ACME Solar: Scalable project pipeline
- Waaree Energies: Manufacturing-led growth play
- Suzlon: Turnaround story with sector tailwinds
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