Driven by Huge CapEx, Indias Electric Power Industry Is All Set to Grow Exponentially

by Piyush Dewangan on 9/20/2011 10:22 AM Category: Process Automation Indias electric power industry is expanding robustly, as the demand for power, spurred by the countrys expanding economy, escalates. The per capita consumption of electricity in India is presently very low, around 730 kilowatthours (kWh) compared to the global average of 2,490 kWh. As Indias economy expands and its manufacturing grows, the per capita consumption of electricity which currently is around 730 kWh compared to the global average of 2,490 kWh will increase, thus spurring the demand for electric power.

According to a new ARC Advisory Group study Electric Power Automation and Asset Management Outlook for India, the market for automation and asset management in India will continue to grow significantly in the next five years. The study provides in-depth analysis of the status and several automation and asset management solutions deployed by the electric power industry in India. The study provides ample market intelligence, five year forecast, market trends and challenges, recommendations and strategies for success, and more. This study also provides an insightful analysis of issues that will affect the business in the future and suggests well-researched strategies for suppliers.

India Offers Immense Growth Potential for the Electric Power Industry The economic growth of the country is leading to increased consumer spending resulting in the growth of manufacturing industries, both process and discrete. Industries, such as automotive, aluminum, cement, and steel are already showing signs of robust growth in the country. With the country just making an entry into a sustainable economic growth phase, these and other industries are expected to keep expanding for many more years. These trends imply that the demand for electric power will keep increasing in the years to come.

According to Rajabahadur V. Arcot, Vice President and GM, ARC Advisory Group, The country needs to augment its existing generation capacity by around 600,000 700,000 MW in the next 15 years to satisfy growing demand for electric power. The electric power industry will have to expand at least at the rate at which the economy expands, if not more. The electric power industry, according to him, must also focus on improving and augmenting the existing transmission and distribution assets, which have a direct impact on the industry's commercial viability.

Electric Power Industry Will Continue to Be the Largest Contributor for the Growth of Automation Systems

Automation plays a key role in the efficient and reliable operations of power plant operations. Asset management solutions play an important role in the proper maintenance of the plant and overall asset performance. These factors contribute to the industry spending a significant share of the capital expenditure on automation and asset management systems. ARC believes that the electric power industry would remain the largest contributor for the growth of automation systems covering the entire portfolio: AC drives, analytical instruments, control and on/off valves, condition monitoring systems, DCS, PLC, electrical, pressure and temperature transmitters, SCADA, safety systems, etc..

According to the principal author of ARCs study, Piyush Dewangan, Indias electricity power industry offers excellent growth opportunities for suppliers of automation systems and asset management solutions. He believes that only those suppliers who are willing to understand the market dynamics and its nuances, spot emerging opportunities and respond appropriately, and address customer needs will emerge as the ultimate winners.