By Business India Editorial

The energy transition landscape in India provides an investment opportunity of $25 billion annually as the sector is poised for a major change over the decade, according a study.

Prepared by Avendus Capital, a leading investment banking franchise, in collaboration with Clean Energy Pipeline, an independent research firm based in the UK, the study collected over 2,000 investor responses. It indicates high economic growth. 

The report says that a stable commitment to decarbonisation has drawn the attention of major organisations and investors around the world. Companies and investors who participated in the survey included SUSI partners, Actis, ABB and Ikigai Capital.

“Despite the global economic slowdown, investment interest in the Indian energy transition sector swelled in 2022. We believe India will continue to be at the forefront of global decarbonisation efforts," said Prateek Jhawar, Managing Director and Head, Infrastructure & Real Assets Investment Banking, Avendus Capital. 

He believes that ‘green hydrogen’ will be the next big wave in energy transition globally, while green ammonia will provide viable end-use in the short-term. 

Akhil Dokania, director, Infrastructure and Real Assets Investment Banking, Avendus Capital, said: "We believe green hydrogen, energy storage, EV charging, carbon capture, utilisation and energy efficiency are the segments that will create a mark for themselves over this decade. Existing companies will expand their offerings and multiple new players or business models will contribute towards energy transition." 

He also said grid load management is critical and investments will go into both pump storage hydro and battery-based storage projects. 

Electric vehicle (EV) charging infrastructure will require large scale investments to support the growing EV penetration in India. While the carbon capture, utilisation and storage industry is in its nascent stages, commercially-viable business models will have to be developed for it to become an attractive investment proposition.

Dokania said Indian companies are coming up with service-oriented solutions for energy delivery as well as management, which further creates a significant value creation opportunity for early investors in the emerging energy transition segments.