As India continues to develop, its energy requirements are on the rise. In 2023, power generation in India surged by 11.3%, marking the quickest pace in at least five years.
According to the National Electricity Plan (NEP) 2022-32, energy demand in India is projected to grow at an annual rate of 6.2%. Peak demand is expected to reach 277 GW by FY27 and 366 GW by FY32.
The power sector is currently facing a notable increase in demand, with forecasts suggesting peak power consumption could hit 260 gigawatts (GW) this September or October—an impressive 20% rise over the past two years. This development could necessitate revisions to the NEP 2022-27, as highlighted recently by Power Secretary Pankaj Agarwal.
In June 2024, power consumption surged to 152.4 billion units (BU), marking a 9% increase from 140.27 BU in June 2023. Additionally, on May 30, 2024, the sector reached a peak energy demand of 250 GW. The NEP projects that by 2031-32, coal-based power plants will need to have a capacity exceeding 900,000 MW, with significant contributions from fossil fuels and thermal sources.
In response to the increasing demand for power, the Indian government has set an ambitious goal of achieving 500 GW of renewable energy capacity by 2030. To support this goal, the Central Electricity Regulatory Commission (CERC) has extended the waiver of Inter-State Transmission System (ISTS) charges for solar and wind energy projects commissioned by June 30, 2025.
Extreme heat and humidity are driving a surge in power consumption across India. The increased use of air conditioners and cooling appliances, particularly during the monsoon season, has further amplified the demand for electricity.
Here are the green energy stocks likely to benefit from India’s projected power demand of 260 GW this year.
On Friday, Torrent Power Ltd shares closed at ₹1,839.90 per share, up 0.69 percent from the previous close price on the National Stock Exchange. The Company has a market capitalization of ₹88,746 crore.Torrent Power Ltd shares have gained 26% in last month.
Torrent Power Ltd. is a prominent integrated power utility company in India, involved in the generation, transmission, and distribution of electricity. It operates across Gujarat, Maharashtra, Uttar Pradesh, and Karnataka.
In the past six months, Torrent Power Ltd. shares have surged by 74%, reflecting a remarkable 178% return over the past year.
The company boasts a total operational capacity of 2,730 MW from state-of-the-art gas-based power plants, 362 MW from coal-based plants, and 368 MW from solar plants. Additionally, Torrent Power has 1,315 MW of solar capacity under development and 921 MW of operational wind power plants.
In 2023, Torrent Power signed a Memorandum of Understanding (MoU) with the Maharashtra government to develop three pumped storage hydro projects with a combined capacity of 5,700 MW, for an investment of approximately ₹27,000 crore over five years.
In January 2024, Torrent Power Ltd. entered into four MoUs with the Gujarat government, to invest ₹47,350 crore (about USD 5.7 billion) across various sectors, with a primary focus on renewable energy, green hydrogen, and electricity distribution during the 10th Vibrant Gujarat Global Summit.
On Friday, Suzlon Ltd shares closed at ₹71.37 per share, up 5 percent from the previous close price on the National Stock Exchange. The Company has a market capitalization of ₹97,349 crore.Torrent Power Ltd shares have gained 35% in the last month.
Suzlon Energy Ltd., an end-to-end wind power solutions supplier in India, manufactures wind turbine generators, power generation equipment, and related equipment., Suzlon is a market leader with 111+ wind farms and an installed capacity of over 14,490 MW.
Over the past two decades, Suzlon has installed over ~20.5 GW of wind energy in 17 countries across six continents.
Suzlon Energy Ltd., the wind turbine generator manufacturer, has increased its market share to 27% in the financial year 2024 from 22% in financial year 2023.
Suzlon Energy Ltd shares have gained 47% over the last six months and 285% over the last 12 months.
Suzlon currently has an order book of 3,817 MW scheduled for execution through FY26, with the majority expected to be delivered in FY25, according to management guidance. The company anticipates commissioning 5.0-5.5 GW of projects in FY25, potentially increasing to 6.5-7.0 GW in FY26 and gradually reaching 8-9 GW by FY27.
Suzlon’s client base includes prominent companies such as ACC, Adani Renewables, Aditya Birla Group, Bajaj, GAIL, Hero, ITC, ONGC, Reliance, SBI, Tata, TVS, and Vedanta.
On Friday, Reliance Power Ltd shares closed at ₹ 34.54 per share, up 5 percent from the previous close price on the National Stock Exchange. The Company has a market capitalization of ₹13,702 crore.Torrent Power Ltd shares have gained 20% in the last month.
Reliance Power has been established to develop, construct and operate power projects both in India as well as internationally. The Company on its own and through its subsidiaries has a large portfolio of power generation capacity, both in operation as well as capacity under development.
Reliance Power, formerly known as Reliance Energy Generation Ltd, is a part of the Reliance Anil Dhirubhai Ambani Group. As of June 2024, promoters held a 23.24 percent stake in the company.
Recently, Reliance Power became a debt-free company on a standalone basis by paying debt of around Rs 800 crore for multiple lenders.
The company has close to 6000 MW of operational power generation assets. Reliance Power’s project portfolio also includes the 3,960 MW Sasan Ultra Mega Power Project (Madhya Pradesh).
Reliance Power Ltd shares have gained 18% over the last six months and 88% over the last 12 months.
Written by Omkar Chitnis
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