Transforming India’s Power Sector

Welcome to Our Newsletter on Power Transmission and Distribution! In this edition, we explore how electricity journeys from generation to your home in India. We’ll examine the efficiency, environmental impact, and sustainability of our energy systems. Join us to uncover the technologies behind power transmission and discover the future of cleaner energy!

Source: SolarSchools

India’s growing Power Demand!

India’s power demand is on the rise! Here are the key numbers:

Source: Adani Energy Solutions

Urbanization, industrial growth, and rising household needs are driving this surge!

The commercial and industrial sectors are poised for strong growth in their power consumption, with an anticipated CAGR of 7-8% from Fiscal 2025 to 2029, driven by infrastructure development and initiatives like Atma Nirbhar Bharat. The chart below illustrates India’s growing power needs across various sectors from FY16 to FY23.

Source: Niti Aayog

To meet rising power demand, India is ramping up its energy capacity! Here are the key highlights:

Source: Adani Energy Solutions, Value Quest

This modernization, driven by government policy, is key for reliable power delivery and a greener future!

The Power Sector in India is transforming!

India’s power distribution is transforming! Here are the key insights:

  • Vertical Unbundling: State-owned utilities are now split into generation, transmission, and distribution. 
  • Tariff-Based Competitive Bidding (TBCB): Leads to significant tariff cuts for consumers and boosts private investment.
  • Private Investment: Since 1998, the sector has attracted private and international players. As per IBEF, FDI inflows alone in the power sector reached US$ 18 billion between April 2000 to March 2024!
  • Power Grid Corporation of India Limited (PGCIL), which once controlled the entire transmission network, now operates 38% of the transmission network with over 99% availability in FY2024.
  • New Regulatory Body: The Central Transmission Utility (CTU) was established in 2021 to boost transparency and competition.

These changes are shaping a more efficient and competitive energy landscape!

India’s Energy Transition: Building the Grid for a Green Future

India is gearing up for a massive energy transformation! Here are the key highlights:

  • Investment Surge (2025-2029):
    • India is set to invest ₹3.0 to ₹3.2 trillion for expanding transmission infrastructure, supporting a target of 500 GW of renewable energy by 2030.
  • Rising Demand from EVs:
    • An expected increase of 11-13 billion units annually, necessitating smart charging solutions to prevent grid strain.
  • Battery Storage Growth:
    • Anticipating 55-60 GW of capacity by 2030 to support clean energy.
  • Smart Grids Revolution:
    • Enabling real-time communication, flexible grid management, and self-healing capabilities, ensuring efficiency and reliability.
  • Global Standards:
    • IEC standards (like IEC 61850 and IEC 62351) are paving the way for smart grid adoption.

These advancements are key to transforming India’s power sector into a sustainable, efficient, and future-ready system!

Ostara’s Take:

India’s clean energy transition is not just an environmental imperative; it’s a catalyst for innovation and economic growth. It will reshape industries by reducing operational costs and driving innovation, while consumers can expect lower energy bills and improved access to reliable power.

Ostara in the News

Team Ostara attended Chakra Open House 2024 organized by Chakra Growth Capital and RiSo Capital, in collaboration with NASSCOM. The conversations revolved around AI’s Impact on Climate and energy, climate sustainability, industry electrification, and India’s Green Hydrogen mission.

Our Founder and CEO, Vasudha Madhavan joined co-panelists and esteemed leaders of the industry: Chetan Maini, Co-Founder and Vice-Chairman, Sun Mobility, K R Jyothilal, Principal Secretary, Govt of Kerala, Dr. Rahul Walawalkar, the chairman of India Energy Storage Alliance (IESA) and Christine Vincent, Principal at Shell Ventures. Check out our LinkedIn post on the same: LinkedIn

Diwali greetings from Ostara Advisors!

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Mukund Ranganathan

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Mukund Ranganathan

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Mukund is a seasoned investment banker with 27 years of experience in advising companies on M&A and capital raising transactions. He has served most recently as Joint Managing Director at Motilal Oswal Investment Banking, where he worked from June 2014 to January 2021. During his career, he has facilitated over 70 strategic financial transactions including Motherson Sumi’s acquisition of PKC Group (Finland), sale of Aurangabad Electricals to Mahindra CIE, Siemens’ sale of Bangalore Airport, sale of Spicejet, Aegis’ acquisition of PeopleSupport (USA), sale of Air Deccan among others. Mukund has extensive experience in raising private equity funding as well as in the capital markets including IPOs, follow-on offerings, GDRs and ADRs for L&T Finance, Indostar, Dixon Technologies, Bharat Financial Inclusion, Tata Consultancy Services (TCS), Wipro, GAIL, etc.

Mukund has earlier worked for 9 years at Edelweiss Financial Services and started his career in 1996 with a 9-year stint at Morgan Stanley. Mr. Ranganathan holds a B.Tech degree in Electrical Engineering from Indian Institute of Technology Madras (1994) and a PGDM from Indian Institute of Management, Ahmedabad (1996).

Vasudha Madhavan

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Vasudha Madhavan

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Vasudha is the founder of Ostara Advisors (formerly Dhruva Advisors) and is one of the first investment bankers in India to specialise in Electric Mobility, having advised clients in this space since 2017. She made her all-India M&A League Table debut in the top 20 in October 2018.

In 2023, Vasudha was felicitated by India Energy Storage Alliance (IESA) as one of the “Women leaders driving energy sector in India” 

Vasudha has over 21 years of experience in Corporate & Investment Banking; with leading organizations like Citibank and ICICI Bank, as well as in boutique investment banking, based in Mumbai and Bangalore. Vasudha is responsible for having set up and expanded the ‘Private Equity & Hedge Fund’ coverage vertical for Citibank, India. She has also been part of Citibank’s Risk Management team for mid-size corporates, managing the bank’s lending decisions to a portfolio of companies in ITES, auto components, facilities management services, logistics, diversified manufacturing etc.

Vasudha is also a mentor at Aspire for Her, a unique organisation that enables women to join and stay in the workforce, through campus engagement, mentorships and skilling workshops. Their vision is to impact 1 million+ women and add $5B to India’s GDP through increased participation of women in the workforce by 2025.

Vasudha earned her MBA in Finance from XLRI, Jamshedpur, India and her Bachelor’s degree in Commerce from Mount Carmel College, Bangalore, India. She is also a certified Advanced Scuba Diver and enjoys photography, having held several solo and group exhibitions of her work.

R. 'Shanx' Ravisankar

Industry Expert – Financial Technology and Cloud Solutions

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Shanx is a founding member and former CEO of Oracle Financial Services Software, (formerly known as i-flex Solutions, the company was acquired by Oracle in 2006). Shanx retired in 2011 as the Chief Operating Officer, Oracle Financial Services Global Business Unit (FSGBU). As a technology leader, he has also been profiled in leading trade and industry publications. In 2008, Shanx was selected as one of the 50 Outstanding Asian American business leaders. This accolade celebrates Asian business leaders and recognizes their pivotal roles in Corporate America. Shanx is an engineering graduate from the Indian Institute of Technology, Chennai, and has an MBA in Management from the Indian Institute of Management, Ahmedabad, India.
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