Nikhil Nigania of AB Bernstein is gung-ho on the power sector. Here’s why
Nikhil Nigania, Director, AB Bernstein, says “we are still in the early stages of a multi-year cycle in the power sector. We think some of these demand supply challenges will continue for some time. The receivables should stay good. And the renewable commitment has been to triple the capacity by 2030. It is still early in the cycle. It looks like good times are ahead for the sector.”
Give us the big picture. Why is power along with its ancillaries so hot in the market?
What has happened in the power sector is that we had a decade of poor performance for the sector. Now suddenly two things are happening. One, we are in a tight power demand supply situation. Hence, we are seeing deficits in power. And second, at the same time, we are trying to do energy transitions as well. And maybe to a third point to add to that, is that receivables for the power sector companies have also improved.
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Offering CollegeCourseWebsiteIIM KozhikodeIIMK Chief Product Officer ProgrammeVisitIndian School of BusinessISB Chief Digital OfficerVisitIIM LucknowIIML Chief Operations Officer ProgrammeVisitHence, given these three factors, we are still in the early stages of a multi-year cycle in the power sector. We think some of these demand supply challenges will continue for some time. The receivables should stay good. And the renewable commitment has been to triple the capacity by 2030. It is still early in the cycle. It looks like good times are ahead for the sector.
Okay, that is a categorical call coming in. But tell me, who stands to gain from this entire capacity addition that one is seeing right now? Does the right to win stand with the PSUs or private? And should you even be making
