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Market Intelligence Assessment for a Sustainable Energy Supplier Helps Identify Strategies for Market Expansion

In 2013, sustainable energy accounted for almost 22% of the global electricity generation and is expected to witness a 26% increase by 2020.

Due to the world economy’s heavy dependence on fossil fuels during the past decades, the carbon dioxide emissions accompanying economic development have intensified the global greenhouse effect; and global warming, climate change, and ecological destruction have severely threatened human survival. As a result, the issue of sustainable development is growing in importance, and the governments of many countries have made sustainable development one of their administrative focal points.

As the world moves towards a more sustainable energy future, the development of technologies that facilitate this for heating, transport, and power systems is crucial. Sustainable energy is one of the fastest growing and complex sector, as energy is an area of geopolitical concern as well as financial activity. There are many forms of sustainable energy that can be incorporated by countries to stop the use of fossil fuels. Moreover, sustainable energy is replenishable and helps in reducing greenhouse gas emissions without causing any damage to the environment. Sustainable energy sources include solar energy, wind energy, geothermal energy, and biomass energy.

Although the sustainable energy sector seems to have a promising future, there may be certain factors that affect its growth:

  • The high capital costs: The most obvious barrier to sustainable energy is the upfront expense of building and installing such power harnessing facilities. Sustainable energy sources are free and require minimum maintenance. A bulk of the expense comes from developing the technology to harness and transmit such energy.
  • Siting and transmission: The sustainable energy segment consists of a decentralized model with smaller generating stations spread across a larger area. To adequately take advantage of these resources new transmission infrastructures are needed, and both siting and transmission can be significant barriers for suppliers in this sector.
  • Market Entry: New energy providers find it difficult to compete with major market players like coal and gas, and those who have proven themselves with low cost solar and wind technologies.

To overcome the challenges mentioned above, sustainable energy suppliers are increasingly opting for a detailed market intelligence assessment. Leveraging the use of market intelligence solutions help firms operating in the sustainable energy market gain a holistic view of the current market scenario and its key stakeholders.IR_Brochure At its core, market intelligence solutions make use of varied information sources that help in creating a broader picture of the company’ existing market, competition, and growth potential for new products and services.

The Business Challenge:

  • The client: A sustainable energy supplier

The client, a prominent sustainable energy supplier, wanted to gain detailed insights into the current market scenario to achieve a stronger foothold in the sustainable energy market space. The client also wanted to carry out a thorough analysis to improve their business models and projections. Additionally, the client was looking at utilizing statistical tools and more complex technologies to handle and manipulate the data.

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The Journey:

Infiniti’s team of experts, specializing in market intelligence, carried out extensive interviews and discussions with prominent stakeholders within the sustainable energy market space. This helped them in understanding the current market scenario, the competitors in this market space, and the potential threats. Moreover, our experts were also successful in gathering information from primary sources including industry experts, researchers, consultants, and distributors. They also explored secondary sources like newsletters, business journals, market research data, and industry associations to improve their awareness in the sustainable energy space.

The Solution Benefits and the Business Impact:

The market intelligence solution offered by the experts at Infiniti assisted the client in anticipating their competitor’s plan and helped them identify the gaps in the market. The solution helped the client by offering a 360-degree view of the market, suppliers, opportunities, and also highlighted areas of concerns. The client also gained a competitive advantage as these solutions enabled them to control costs, act faster than the competition, and react more quickly to customers’ needs. Moreover, it also helped them develop strategies to improve their market presence.

The Future:

Considering today’s market developments, sustainable technologies are cheaper than nuclear and coal and are on par with combined-cycle natural gas. This, along with the lowered costs of digital equipment such as sensors, CPUs, and data storage technologies will help in the growth of the sustainable energy industry.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the sustainable energy sector


Competitor analysis

Market Assessment Study: How Infiniti Helped a Hydro Energy Client Define Their Tactical Actions

Following years of stagnation and bad press, the hydro energy industry is experiencing a resurgence. Technologies with a lower environmental impact such as run-of-river, small hydro and low head turbines are proving to be extremely popular to both appease critics of hydro and meet energy needs. Additionally, there has been an increase in pumped storage projects as a standalone option and retrofitted on to existing hydro energy assets. However, innovation in the sector has been lacking and has mainly been in the use of computation for monitoring, diagnosis, and control of plants.

Let’s look at a few key factors that are expected to influence the growth forecasts of the hydro energy industry in the coming years.

  • Increasing competition: With the entry of prominent global leaders, the hydro energy industry has witnessed an increasing level of competition with new entrants attempting to gain a significant share of the industry. Additionally, the shift toward renewable sources of energy is resulting in the entry of new players, thereby, affecting the current supply landscape.
  • Increasing customer expectations: Prominent hydro energy companies are facing relentless pressures to maintain a secure, reliable, and affordable supply to the customers as the demand for energy services is spurring significantly. Additionally, with customer expectations increasing, leading companies are facing the need to switch suppliers frequently to meet the rising needs of the individuals.

Many such factors are compelling firms in the hydro energy space to leverage the use of market assessment solutions. Market assessment solutions help firms gain strategic insights on real-time market information and predict the entry of new companies. IR_BrochureAdditionally, companies can categorize the most profitable market segments and refine their relationship with the customers to improve overall profitability.

The Business Challenge

  • The Client: A leading hydro energy provider
  • The client, a renowned hydro energy provider with business operations spread across the globe, wanted to profile potential customer segments and implement appropriate marketing initiatives to enhance business performance. Additionally, the client wanted to gain an understanding of the demographics to create robust value framing strategies across the industry.

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The Journey

To help the client better define their tactical actions, Infiniti’s market assessment experts carried out extensive qualitative and quantitative research and identified the prominent stakeholders in the metal fabrication market. Furthermore, to address the specific category requirements of the metal fabrication company, the experts compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums.

The Solution and the Business Impact

The market assessment solution offered by Infiniti helped the client profile the most profitable target segments and devise the best possible market strategy. Additionally, the client identified the current market position of their company and identified key competitors through SWOT analysis. This helped them increase market shares across every vertical.

The Future

More environmentally friendly hydro products are likely to enter the market in the future as the environmental impact of projects along with local opposition from tribal groups is backing the development of these projects.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the hydro energy industry


Pharmaceutical Industry

Competitive Intelligence Assessment: How Infiniti Helped a Prominent Smart Grid Technology Provider Stay Ahead of the Competitors

It is estimated that the smart grid technology space is expected to reach $830.56 billion by 2025.

The past few years have witnessed a stipulated growth in the demand for economical, sustainable, and reliable electricity. So, organizations are emphasizing on the need to implement robust operational measures such as smart grid technologies to efficiently control the production, distribution, and conditioning of electricity. The growth of the smart grid technology can be attributed to the emergence of cloud platforms, increasing adoption of IoT, and the need to conserve energy. Although the smart grid technology space is witnessing a promising growth owing to the increasing adoption of smart meters, regional government initiatives, and growing number of advanced infrastructure projects, several factors may influence the growth of the sector.

  • Barriers in the adoption of technology: With the rising investments in transmission optimization and distribution automation, organizations are facing the need to comply with the clean power plan to further increase the emphasis on renewable resources.
  • High costs of installation: Growing concerns pertaining to offering reliable and scalable services is compelling organizations to shift toward smart grid technology. With smart grid becoming increasingly multidimensional, deploying hardware and software components involves comparatively higher costs as compared to the traditional counterparts.

To address these challenges and assess the prominent competitors in the market, leading businesses are leveraging the use of competitive intelligence assessments. An effective competitive intelligence solution helps organizations to gather, analyze, and manage market information to make strategic informed business decision. Moreover, organizations can profile the prominent competitors and enhance their competitiveness in the market.IR_Brochure

The Business Challenge

  • The Client: Smart grid technology provider

The client, a prominent smart grid technology provider, wanted to identify the competitors and understand their strengths and weaknesses to develop effective business strategies. The client wanted to compile information of the competitors in terms of their history, key facts, products and services, and business objectives. With the help of a competitive intelligence solution, the client wanted to collect and compile data on the products and services and pricing models, and identify unique selling propositions. The primary concern of the client was to optimize their business process and strategies by comparing with that of the competitors.

IR- competitive intelligence

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Our Journey

To gain detailed insights into the competitors’ value proposition, the competitive intelligence experts at Infiniti carried out an extensive research methodology comprising interviews and discussions with prominent stakeholders in the smart grid technology space. Moreover, to assess the performance of the competitors, the experts also compiled information from reliable sources such as trade shows, industry forums, and company presentations in the smart grid technology space.

The Solution Benefit and the Business Impact

The competitive intelligence solution offered by Infiniti helped the smart grid technology provider identify the top competitors and constantly monitor their activities. The engagement also helped the smart grid technology provider to analyze the key performance indicators and effectively analyze their marketing resources to meet the business requirements. Moreover, the competitive intelligence solution also sought ways for the client to formulate effective strategies to stay ahead of the competition. The solution also helped the client direct their development and marketing efforts to launch new products and services effectively.

The Future

The future of smart grid technologies will be marked by innovations, especially in terms of virtual power plants such as smart meters, solar panels, and demand response systems. Moreover, the smart grid technology space will also witness an upgrade in terms of transmission grids with communications and controls that can deliver 10% more efficiency as compared to the existing generation capacity.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the smart grid technology space


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Top Clean Energy Predictions for 2018

The ‘Go Green’ anthem is echoing around the world. This trend is putting pressure on all the global industries to streamline their activities to a more environment-friendly approach. The energy industry was among the first sectors to come forward and incorporate the idea of resorting to environmentally friendly practices. Additionally, the depleting rate of fossil fuels and the increasing regulatory measures were a good enough reason for them to undertake clean energy measures. In 2018, the continuing plunge in costs for solar and wind energy means that market opportunities will keep opening up for clean power, storage, and electric vehicles. Curious to know what twists and turns the energy industry is going to witness in 2018?  We unravel to you the top clean energy predictions for the upcoming year:IR_Brochure

Dip in battery pack prices

Lithium-ion battery pack prices are expected to showcase a steady decline in 2018. Despite an increase in the price of cobalt and lithium leading to increasing average cell prices, it is likely that the average cost per pack will decline by 10-15%. This trend will be driven by economies of scale, larger average pack sizes and energy density improvements of 5-7% per year.

Rise in the sale of electric vehicles

The transportation industry’s inclination towards clean energy has boosted the growth of electric vehicles. The sale of electric vehicles is expected to hit the all-time high margins this year. As compared to 2017, it is predicted that there would be a 40% rise in the electric vehicles segment in 2018. In the European market, the mounting urban air quality concerns and diesel’s fall from grace will help spike the growth of the electric vehicles market.

Energy transition in Asia’s two largest power systems –  India and China

In the energy industry, India and China face opportunities and challenges that are entirely different from one another. The Indian energy sector saw a mixed year in 2017, though 12GW of renewable energy were built, there was a dip by 20%  in new investments in clean energy resulting from a number of canceled auctions and power contract renegotiations. However, 2018 is expected to be the last year in which fossil fuels will outpace renewables in India. The Indian regulatory bodies are undertaking rigorous clean energy measures to stabilize global greenhouse emissions. In the case of China, the solar fever will continue to rage in 2018. In the upcoming year, China is expected to build more “distribution-grid-connected” solar projects than the larger “transmission-grid-connected” projects.

Growth in global wind installations

Wind energy is one of the major sources for generating clean energy around the world. Both onshore and offshore wind installations are expected to show a growing trend in 2018 and are expected to hit an all-time high record by 2019. China and Latin America are likely to be the two regions seeing growth between 2017 and 2018. The U.K., Germany, Netherlands, and China will continue the main markets for offshore wind projects.

Solar installations to shoot up

Solar energy still dominates as the most rapidly developing and widely accepted technique for generating clean energy. According to various industry experts, global solar installations will be at least 107GW in 2018. China will continue to be the leader in solar energy with 47-65GW of solar installations.

To know more about the clean energy trends for 2018Ask an analyst

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Is the APAC Region Gearing Towards a Sustainable Future with Renewable Energy?

The world’s energy needs are constantly on the rise, and power companies are looking at all sorts of possibilities and modes to fulfill the increasing demand. It’s a tough task to produce enough electricity to power the needs of all the people across the world. A traditional source such as fossil fuel has been used on a wide scale as the most significant source of energy. However, due to environmental concerns and increasing emissions, governments across the world are slowly reducing their dependence on fossil fuels and are switching over to a cleaner source of energy. As a result, renewable energy sources have been grabbing the headlines more often. The APAC region has been regarded as the prime example for the adoption of renewable energy sources for their power requirements. Numerous reports estimate the energy demand in the APAC region to nearly double by 2030. The region is on the right path to meet such demands even after reducing their dependence on traditional sources. The Chinese government is expected to IR_Brochuremove away from energy production from coal, which kills thousands of people each year. So, what does the renewable energy future look like in the Asia-pacific region?


China is a world leader in wind energy generation and has ambitious plans to triple its solar power capacity by 2020. The country is aiming to raise its solar energy generation to 150GW and wind energy generation to around 250GW by 2020. Although the renewable energy sources accounted for approximately 14% of Chinese power, they expect to increase this figure to 22% by 2020. In 2017, China announced to scrap their plans to build 85 coal-fired power plants and instead pour about $350 billion into renewable energy. Additionally, the authorities reported that the country had exceeded official targets for carbon intensity, energy efficiency, and the share of clean energy source.


Similar to China, in 2015, India also announced their ambitious goal of increasing the renewable energy power capacity to 175GW by 2022. This plan includes increasing the solar capacity to 100GW, wind energy to 60GW, bioenergy to 10GW, and hydropower to 5GW. If they achieve this target, then they will witness a five-fold increase in power capacity in a span of seven years. Currently, India is the fourth largest installer of wind power behind China, the US, and Germany. India has been largely helped by the falling solar installation prices, with the rate falling as low as 4 cents a kilowatt hour to add 250MW of solar capacity in Rajasthan.


The shift towards a renewable energy future seems to be picking up steams in Japan. After the Tohoku earthquake, 2011 Tsunami, and triple meltdowns at the Fukushima nuclear power plant, the Japanese government introduced a feed-in tariff system to promote renewable energy. The scheme made it mandatory for utilities to purchase wind, solar, mini-hydro, and geothermal energy at a fixed rate for the specified number of years. A report from IEEFA expects Japan’s solar energy to account for 12% of electricity mix by the year 2030. The report also estimates the renewable capacity to reach 159GW by the year 2030.


The success of solar farms in Thailand coupled with positive development in other clean energy resource puts Thailand right on track to achieve its goal to reach the share of renewable energy by more than 37% by 2036. Additionally, the development of ultra-fast charging battery in Singapore is showing a promising renewable energy future as it can charge batteries up to 70% in just two minutes.

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Pros and Cons of Nuclear Energy You Should Know

The origins of nuclear energy can be traced back to 1932 when physicist Ernest Rutherford discovered that immense amount of energy was released when lithium ions were split by protons from a proton accelerator. After subsequent discoveries from Niels Bohr and Albert Einstein, nuclear energy was able to power nuclear reactor for energy generation. Today, uranium, a common element in the Earth’s crust, is the element of choice for conducting nuclear fission for generating electricity. Going by today’s consumption rate of the element, numerous studies estimate the IR_Brochurereserves to last for another 200 years’ worth of supply. Nuclear energy is distinct from any other source of energy and has its own sets of pros and cons.

Advantages of nuclear energy

Continuous electricity generation

Nuclear power unlike other sources of energy is independent of natural conditions. For instance, solar and wind energy is highly dependent on hours of sunlight or wind which doesn’t usually coincide with fluctuating energy demands. A nuclear power plant is generating electricity about 90% of the annual time which is relatively high compared to other forms of renewable energy. In comparison, natural gas generates an average electricity of 50% of the annual time, while coal and wind produce energy at almost 51% and 32% respectively.

Output efficiency

A significant advantage of using nuclear power over fossil fuel is the relatively low amount of fuel it is required to produce an equivalent amount of energy. The cost of nuclear fuel, i.e., uranium, accounts for only 20% of the cost of electricity generated. Such high levels of efficiency also make it easier in transportation, handling, and extraction of nuclear fuel and subsequently reduces the overall costs in the supply chain.

Clean source of energy

The only byproduct generated out of a nuclear power plant is used uranium which is safely stored in pools or concrete containers. Unlike other fossil fuel source, it does not emit CO2 causing air pollution and acid rain. Of all the clean energy sources like wind, solar, and hydro, nuclear power is the most significant source of clean-energy generation in the US contributing to 64% of the total output.

Disadvantages of nuclear energy

Radioactive waste

The radioactive waste generated as a byproduct of nuclear power is hazardous and has to be carefully stored and monitored for several thousand years. Although high-security standard is maintained to store this waste effectively, accidents can still happen with deadly consequences for both humans and nature. A nuclear or radiation accident such as Fukushima Daiichi nuclear disaster, Chernobyl disaster, and Three Mile Island accident have posed serious questions to the safety of nuclear energy.

High capital investment

Capital Investment

Although the fuel source of nuclear power, uranium, is relatively low, the cost of electricity is significantly driven by the high rate of initial investment for constructing a nuclear plant. So nuclear plant will have to run for a number of years in order to recoup the initial investment. Additionally, nuclear plants also have a limited life; after expiry, they have to be dismantled. The construction time for a nuclear power plant usually takes 4-5 years with a payback period of over 30 years which is relatively high considering other source of energy.

Fuel availability

Fossil fuels can be mined in many parts of the world, which is not particularly accurate for uranium, which is a very scarce resource. Only a handful of countries have uranium ores, and getting the approval from several international authorities is a tiresome process before building a nuclear power plant. As a result, not many countries can depend on nuclear energy to fulfill the energy demand.

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Top Five Utility Companies Powering the Electricity Demands of the World

Today, electricity is a vital part of our everyday lives, right from powering big houses and corporations to small mobile phones, which are an integral part of our lives. Every utility company plays a significant role in supplying the power from the source to individual houses using the grid system. The costs incurred while building such an infrastructure is insanely high. As a result of such high costs, many developing nations are facing the issue of power shortage as they cannot adequately invest in the infrastructure. However, in the developed parts of the world, utility companies have set up massive infrastructure that distributes power to millions of households. It comes as noIR_Brochure surprise that the utility company from these nations are some of the biggest in the world. Here is a list of top utility companies in the world.

Duke Energy

Duke Energy Corporation, headquartered in Charlotte, North Carolina, is one of the largest electric power holding company, not only in the US but also in the world. Its utility business unit provides electricity access to 7.4 million retail electric customers in Southeast and Midwest regions with a total capacity of a massive 57,700 MW. The utility company derives electricity from sources such as coal, natural gas, and oil. Their service territory covers 270,000 km of land with 402,700 km of distribution lines. The company reported revenues of $22.74 billion for the year 2016.


Engie, previously known as GDF Suez, is a French multinational utility company which operates in the field of electricity generation and distribution, nuclear energy, natural gas, and renewable energy. In 2008, the company broke the state monopoly and de-emphasized its historical role as a nationalized gas monopoly. In 2016, the company generated revenues of €66.66 billion by employing over 154,950 employees. In a bid to promote low-carbon distributed energy the company announced its decision to stop new investments in coal plants in the year 2015.

National Grid

National Grid is a British multinational electricity and gas utility company that owns and maintains high-voltage electricity transmission network in England and Wales. The company is the only owner and operator of gas transmission infrastructure in England and Wales. The company also operates 14,000 km of electricity transmission lines in the US, delivering power to the areas of Northeast states of Massachusetts, New York, and Rhode Island, serving over 3 million customers.


NextEra Energy Inc. is an investment company which operates in the US and Canada. The company generates electricity and is also involved in transmission and distribution with a capacity of about 45,900 MW. The company operates through various subsidiaries including Florida Power & Light (FPL), NextEra Energy Resources (NEER), and FPL FiberNet. With an aim to promote the use of renewable energy, the utility company attempted to purchase Hawaiian Electric Industries for $4.3 billion in the year 2014.


Électricité de France SA (EDF) is wholly owned by the French state and is involved in power generation, transmission, distribution, and energy supply and trading. The company handles 5 to 7 million customer accounts in the UK by the sale of gas and electricity to homes and businesses. The utility company is actively engaged in energy generation from renewable sources, which are reflected by its move to start the 62 MW offshore Teesside Wind Farm operations. The utility company consolidated its business in France and Europe to increase its presence in key emerging countries including Brazil, China, and Russia. The utility company also operations three of the top ten nuclear power plants in the world.

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Energy Industry Trends: Factors Expected to Spark Change in 2018

energy industry trends

Energy industry overview

The world population is on the rise, so is the demand for energy. The good news is that the recent energy industry trends are more focused towards sustainable energy generation methods, especially due to the ever-increasing environmental concerns such as global warming. But on the flip side, the energy industry is facing mounting challenges when it comes to providing cheap and reliable energy owing to the high costs involved and lack of sufficient resources to meet the growing demand. Over the past year, global conditions have also continued to challenge the energy sector. However, with breakthrough developments in the energy sector in the recent times and more emphasis from the government for clean energy measures, 2018 will undoubtedly be an eventful year for the energy sector. Here are our top picks of the energy industry trends that you can expect in 2018:cta ir

Energy Industry Trends 2018


Market Intelligence Helps a Renowned Power Supplier Optimize Strategies for the Indian Market

Since the enactment of the Electricity Act in 2003, the level of competition in the Indian power market has increased substantially.

Globally, the power market has been marked by the transition towards a more decentralized and intelligent energy system, which is expected to continue this year as well. The power market is driven by the continued regulatory support for renewable energy, especially in developing economies like India, which is a key market for power suppliers across the globe. The growth of the power market is driven by the “three Ds of energy” – rising decentralization, growing need to decarbonize electricity generation, and digitization. However, apart from these factors, there are a few fundamental factors that are impacting the overall growth of the power market. These factors include:

  • Increasing competition: With the entry of new suppliers, the power market is witnessing a high level of competition with players attempting to gain a major share of the market. Additionally, the shift towards a more competitive environment from a monopolistic environment a is opening up the space for new market players to establish themselves in the industry.
  • Increasing customer expectations: Leading companies in the power market are facing the need to change their business models to meet the rising demands of the customers who are now opting for suppliers that offer reliability and better security in their services.

These factors are compelling firms to leverage the use of robust market intelligence solutions. Market intelligence solutions help firms gain a precise view of the market and customers records and enable them to analyze and interpret information about the key competitors in the space. This would help businesses determine relevant market opportunities and make accurate business decisions.IR_Brochure

The Business Challenge

  • The client: A renowned power supplier
  • Area of engagement: Market intelligence

The client, a renowned player in the power market with distribution centers spread across various locations, wanted to gain accurate and detailed information on the Indian power market’s growth potential and possible ways to increase profits, revenues, and market shares. Additionally, the power supplier wanted to meet the growing demands of the customers by bringing about cost-effectiveness in their service offerings and gain insights into the market size calculations, substitute products, and competitor analysis. The client also wanted to minimize the risk of investments and penetrate the niche and profitable market segments.

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Our Journey

The market intelligence experts at Infiniti carried out extensive research, comprising of interviews and discussions with prominent stakeholders in the power market to ascertain the demand for products and services and offer reliable offerings in the market. The experts also gathered information from a wide array of proprietary sources such as paid industry databases, trade shows, and company presentations in the power market.

The Solution Benefits and the Business Impact

With the help of Infiniti’s market intelligence solution, the power supplier was able to identify the niche and profitable market segments and accordingly tailor offerings and marketing efforts around the customer’s needs. Additionally, the power supplier was able to identify the key competitors in the Indian power market and devise effective strategies to establish their presence in the market.

The Future

Over the next couple of years, the power market in India will experience promising growth despite China being the largest market in terms of revenue investment. Our analysts believe that the power market in India will witness double digit growth until 2020 due to the advent of newer business models that incentivize smarter consumption patterns. 

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the power industry


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Top 5 Hydroelectric Power Benefits

Hydroelectric power is one of the oldest forms of electricity generation dating back to hundreds of years where it was used to power domestic power lifts, sawmills, and to perform mechanical tasks like grinding grains. However, the use of hydroelectric power has evolved over time and it is currently the biggest source of renewable electricity. It also contributes to about one-fifth of the entire world’s electricity. The consumption and demand for hydroelectric power are continuously on the rise as it’s a clean fuel source and also one of the cheapest forms of energy today. Apart from generating electricity, hydropower can be used for agricultural activities, industrial uses in hushing, and powering IR_Brochurewater clocks. Here is how hydroelectric power benefits the society, nation, and the world at large:

#1 – Economic source of energy

One of the most pivotal hydroelectric power benefits is the relatively low cost of extracting electricity. For many investors, the upfront cost of constructing and installing hydropower plant can be very high. The prices include not only the plant cost but also the cost of building a dam. But once the power plant is in place, the cost of operation and maintenance is meager. As a result, the marginal cost of per kilowatt of electricity will reduce significantly. Also, since water is used in electricity generation, it is not required to be purified like fossil fuel. The source of hydroelectric power will remain perpetually and have an insanely long lifespan.

#2 – Renewable and clean resource

Since water is the primary source of hydroelectricity, the resource can be used until the end of time. A notable benefit of hydroelectric power is its ability not to consume water, as water powering the turbine ends up in the water stream again. They only derive the energy from moving water and convert it to electricity.

#3 – Eco-friendly

A recent report from the World Energy Council reported that hydroelectric power accounted for about 1,064 GW of installed capacity in the year 2016. To put that in context, each KWh takes about 0.36 kilograms of coal to generate. Thereby, hydroelectric power is an eco-friendly option compared to coal and fossil fuel, which accounts for a major chunk of  the total emissions. Also, using hydroelectric power mitigates the emissions of greenhouse gases that is equivalent to the combustion of 4.4 million barrels of petroleum each day. Additionally, hydropower production doesn’t have any toxic byproducts that would harm the environment.

#4 – Flexibility

An interesting hydroelectric power benefit is its ability to scale the supply of electricity as per the need. When the demand for electricity is low, excess energy can be used to pump water to an upper reservoir. Conversely, when the demand for electricity surges, the stored water is released to power the turbines. The drawback of other form of energy such as wind or solar is that they can only be used when there is sufficient wind flow or sunlight; whereas, water is constantly available. Additionally, at the time of blackout or peak demand, hydroelectricity can be flawlessly fed into the main electric grid system compared to other energy sources.

#5 – Picks up water shortage slack

Hydropower has various other uses apart from electricity generation. The collected water can be easily used for irrigation, for drinking water purpose, or rainwater harvesting. Storing water in such a way also assists in the reduction of vulnerability during droughts and floods. Additionally, impoundment hydropower can create a reservoir for recreational activities such as fishing, swimming, and boating.


To know more about hydroelectric power benefits, hydroelectricity, renewable energy sources, clean energy, and electric grid:

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