India's energy demand is expected to increase more than that of any other country in the coming decades due to its sheer size and enormous potential for growth and development. Therefore, it is imperative that most of this new energy demand is met by low-carbon, renewable sources. India's announcement India that it intends to achieve net zero carbon emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change.

The Indian energy and utilites sector is the fourth most attractive renewable energy market in the world. India was ranked fourth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2020. Installed renewable power generation capacity has gained pace over the past few years, posting a CAGR of 15.92% between FY16-22. India is the market with the fastest growth in renewable electricity, and by 2026, new capacity additions are expected to double.

With the increased support of the Government and improved economics, the sector has become attractive from an investors perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role.

It also supports the power grid and is relied upon as a reliable energy source. Renewable energy resources such as wind and solar are increasingly being exploited as energy sources as they have low operational costs and are able to meet environmental regulations.

On the contrary, renewable energy business has its perks. The renewable power generators are stress-free to turn on and off making them dependable for the power supply when needed. Even without the presence of the sun or the wind blowing, grid operators have the possibility of drawing from energy reserves like in the case of hydroelectric and natural gas energy sources.

Despite the fact that environmental regulations are causing power suppliers to turn increasingly to new sources of energy, the underlying factor of their business is efficiency. This efficiency is highly needed in natural gas and coal-fired power generators. When talking about efficiency, power suppliers should strive to increase cost savings and pass on this savings to their customers in form of reduced rates.