Page 84 - Nuvama | IC Report 2023

• MANUFACTURING • NEW ENERGY • URBANISATION • CONSUMPTION PREMIUMISATION • EQUITY SAVINGS CULT

New Energy: A paradigm shift in power

Energy powers all—machines as well as humans. It is the implicit assumption underlying all economic
activity. In fact, the history of mankind’s progress is intertwined with evolution of energy—from wood to
coal to hydro and nuclear, and so on. Having lived off fossil fuels for about 250 years, the human race
now faces a watershed moment in energy evolution. Prophesies of climate cataclysm are setting off a
tectonic shift towards less polluting forms of energy production.
This transformation to ‘New Energy’ heralds the next leg of growth for Indian companies—over time.
It shall have far-reaching implications at all levels of energy value chain—right from production to
transmission to storage to consumption. It engenders repurposing legacy assets into sustainable and
net-zero carbon as well as reimagining the entire energy ecosystem. We explore India’s preparedness
in harnessing this paradigm shift in power.

What is New Energy?

We refer to New Energy as the process of funding, generating, storing and transmitting energy beyond
traditional fossil fuels; it is essentially renewable energy. A core objective of New Energy is to enhance
the use of renewable energy beyond electricity generation.
New Energy encapsulates the entire ecosystem—right from photovoltaic (PV) solar module
manufacturing, RE generation, battery storage, electrolysers (for green H2 generation), and fuel cell
manufacturing used in Fuel Cell Electric Vehicles (FCEVs) to EPC solutions. According to think-tank
CEEW-CEF, India needs ~USD10tn in investments for net-zero emissions by 2070.

Exhibit 1: ELECTRIFICATION ELECTRIFYING INDIA
A schematic
representation
of New Energy’s
scope

New energy Renewable Electrolyser Industrial uses
energy generation (chemicals, refinery, etc)

Green
Hydrogen
Fuel cell Road transport
Source: Nuvama Research

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