During the APAR Investor Day 2024, Mr. Manish Agarwal, CEO of the Conductor and Telecommunications Business and Managing Director of APAR T&D Projects Private Limited, delivered a compelling presentation that outlined the critical trends shaping electricity demand in India and the strategic initiatives undertaken by APAR Industries Limited. His insights provided a comprehensive understanding of the current energy landscape, emphasizing the interplay between economic growth, technological advancements, and environmental commitments.

The points below summarize his speech and highlight his perspective.

Key Drivers of Electricity Demand

Economic Resilience and Growth

India’s economic trajectory remains robust despite global uncertainties. The economy is projected to grow by 8.2% in FY 24, reaching approximately $3.5 trillion, which lays the groundwork for achieving the ambitious $5 trillion target. This growth is closely linked to increasing electricity demand, as India’s per capita energy consumption currently stands at roughly 1,300 kilowatt-hours—significantly below the global average of 3,000 kilowatt-hours. As per various estimates, including that of Central Electricity Authority (CEA), this figure could rise to between 1,800 and 2,000 kilowatt-hours per year by 2030, mainly due to rising industrial activity and urbanization.

Decarbonization Efforts

The imperative for decarbonization is a pivotal factor driving electricity demand. India’s hydrogen mission exemplifies this commitment, aiming to leverage renewable energy (RE) for green hydrogen production. This initiative supports industrial applications and enhances energy storage and grid management capabilities. As the mission progresses, it is anticipated that electricity demand from renewable sources will surge.

Urban Migration Trends

Urbanization is another significant contributor to electricity demand growth. The World Bank estimates that by 2031, 40% of India’s population will reside in urban areas—up from 31% in 2011. This demographic shift necessitates substantial upgrades to energy infrastructure to meet the needs of expanding urban centres.

Climate Change Initiatives

Climate action is poised to catalyse investments in renewable energy and power grids. According to the International Energy Agency (IEA), achieving net-zero emissions will require an estimated $4.5 trillion investment in clean energy by 2030, which is 2.5x increase from current levels. India’s commitments made during COP26 highlight its dedication to reducing emissions intensity by 45% from 2005 levels by 2030, integrating 500 gigawatt of non-fossil energy into the grid & meeting 50% of its energy requirements from renewable energy by 2030 and achieving net-zero status by 2070. To match the renewable energy capacity addition speeds, the transmission projects need to come online by 2028-29.

APAR’s Strategic Positioning

Infrastructure Development Initiatives

APAR Industries Limited stands at the forefront of addressing these trends through its diverse portfolio of products and solutions designed for energy infrastructure. The company has made substantial capital investments aimed at expanding production capabilities and enhancing operational efficiency.

Innovative Product Offerings

Mr. Agarwal highlighted APAR’s focus on innovation within its conductor business, showcasing high-efficiency conductors tailored for modern transmission systems. The company’s commitment to developing high-temperature low-sag conductors, continuous transposed conductors, covered conductors, coated conductors and specialized turnkey solutions positions it as a leader in the market.

Sustainability Commitment

APAR’s mission revolves around creating energy-efficient and environmentally sustainable solutions. By integrating advanced technologies into its manufacturing processes, APAR aims to meet the increasing demand for reliable energy infrastructure while adhering to stringent environmental standards.

Major Infrastructure Opportunities

Offshore Wind Initiatives

India’s ambitious offshore wind projects present significant multi-year opportunities across various sectors. The Ministry of New and Renewable Energy (MNRE) has identified high wind energy zones off the coasts of Gujarat and Tamil Nadu, targeting a total capacity of 37 gigawatts. Recent government approval on the scheme for offshore wind energy projects further underscores this commitment.

High Voltage Direct Current (HVDC) Projects

The development of large HVDC projects represents another critical area of focus for APAR Industries Limited. The mega transmission highways in the form of HVDC are essential for integrating renewable energy sources into the grid effectively.

Railways

Railways are planning to increase the capacity on many of the existing corridors for increasing the speed of the trains. With the largest market share, a very good track record on the supply (supplied 31,000 KMs out of 45,000 KMs of electrification), and development of special conductors (Cu-Ag Contact wire, Cu-Mg Catenary wires) for high speed and bullet trains, APAR is well-poised to address the needs of Railways and help it to become the largest rail network with zero carbon emission by 2030.

OPPC
APAR has leveraged its core strengths to design and manufacture Optical Phase Conductor (OPPC) cables, suitable for 33 kV and 66 kV transmission lines. We are preparing to undertake a pilot turnkey project and then commercialize the end-to-end offering.

Capex

APAR has undertaken strategic capex to expand capabilities, improve productivity, reduce costs, and increase production capacity for high value-added products. The capacity is expected to nearly double for copper CTC/PICC and AL-59/AAAC conductors and increase by 166% for copper busbar in FY25 (from FY23 levels). Globally, we are also targeting partnerships with various utilities and EPCs to expand our market presence.

Global Grid Initiatives

The ‘One World, One Sun, One Grid’ initiative signifies a monumental shift toward a global energy sharing framework. Its implementation will drive substantial demand for various equipment and solutions ranging from HVDC transmission lines to smart grid technologies and renewable energy stations.

Technology & Solutions

APAR is at the forefront of innovation with over six decades of experience in technology partnerships for advanced products. Our new product development initiatives include trials for coated conductors that promise reduced line losses, increased conductor capacity & improved durability in challenging environments; reconductoring solutions with HTLS using Emergency Restoration Systems (ERS). Additionally, we are working on end-to-end capability turnkey solutions for MVCC and an enhanced version of Aluminum Carbon Composite Core Conductor (ACCC), with optical fiber embedded in the core.

Ampacity and Low Losses

Due to ROW challenges, there is a need to debottleneck the current transmission lines through advanced products focusing on higher ampacity and low loss technologies. APAR’s HTLS conductors, coated conductors and reconductoring solutions help achieve higher capacities and lower losses. Our advanced testing and research facility help in evaluation of conductors w.r.t. heating and cooling curve versus ampacity, emissivity versus ampacity, etc.

Mr. Agarwal’s insights at the APAR Investor Day 2024 provided a detailed overview of the factors influencing electricity demand in India while highlighting APAR’s proactive approach in addressing these challenges. As India embarks on a transformative journey toward sustainable energy solutions, APAR remains committed to innovation and operational excellence.

In summary, APAR’s strategic initiatives enhance its competitive edge and contribute significantly to India’s overarching goals for economic growth and environmental sustainability. At the end of the presentation, he encouraged stakeholders to engage with APAR as it navigates this dynamic landscape, fostering collaboration that drives mutual success in achieving energy efficiency and sustainability objectives.