The next investment frontier for PE firms in India’s power sector
In February, ACTİS invested $ 200 million in a joint attempt that will organize smart meter infrastructure in the country with EDF India.
Singapore’s Night investment LaIn July 2023, Jaipur -based genus power infrastructure 519 Crore. They agreed to establish a platform to install intelligent meters and provide relevant services by committing a first pipeline with a capital expenditure of approximately $ 2 billion.
GIC and breed, the government to build 250 million smart meters in the country will invest an estimated $ 30 billion, he said.
In February 2023, Squarered Capital invested $ 100 million for the control stake in Polalar Smart Measurement. IoT -based smart measurement company Probus collected $ 3 million in March 2023 and $ 5 million from Unicorn India Ventures in February 2025. In March 2024, Kimbal Technologies collected $ 5 million in a hymen finance led by Niveshaay.
Achishek Bansal, a special capital company that focuses on infrastructure and energy, said that smart measurement has rapidly emerged as a compelling passage for India’s energy sector.
What directs attention?
Smart meters are digital devices that provide accurate and live consumption data that allows public services and consumers to monitor and manage energy more effectively. They can increase operational efficiency, reduce technical and commercial losses and increase the financing of power distribution companies (Discoms).
Bansal is the formation of the government’s presentation of the opportunity of the opportunity in India: long-term agreements, annual payments and an ambitious goal of building 250 million smart meters-hepsi also meets to create a strong foundation for investor confidence and long-term returns.
“This is a well -structured, scalable opportunity that offers both impact and stable returns, Bans Bansal said.
According to Avener Capital’s founder Shivam Bajaj, infrastructure -oriented private capital consultancy firm is connected to two main companies to meet the target of establishing 250 million smart meters by March 2026: advanced measurement infrastructure service provider and original equipment manufacturer (OEMS).
10-year contracts are given to infrastructure service providers, such as ACTİS-EDF India and GIC-GENUS, to establish and maintain smart meters and relevant infrastructure. They are paid annually and can also sell consumption data information to public services and government institutions.
Bajaj added that OEMs that design and produce digital devices have offered significant growth opportunities for the next four to five years.
“OEMs are expanding the capacity to require a new financing,” he added that Intelismart, HPL, breed and Polaris have already expanded the production units.
According to the January 18 update of the Ministry of Power, projects covering 197.9 million smart consumer meters were approved and approximately 115 million smart consumer meters were given and established.
Bajaj, “the installed capacity from 25 Crore (250 million) meters to be replaced, so far is only around 3 Crore. You will need 3-5 well-financed OEMs that can deliver 6-7 Crore meters a year to meet the targets in the next 4-5 years,” Bajaj said. “In the next few years, there is the potential to establish a few other platforms and meter producers continue to invest in capacity expansion.”
Situation for smart meters
Most houses still use analog meters that follow the total use and cannot support dynamic pricing according to their usage time. Electrical costs vary according to demand, but without smart infrastructure containing smart meters, public services cannot reflect this in customer billing prices.
To address this, the government began to modernize India’s power network about eight years ago and launched a program to replace the analog meters with smart ones. He said that private companies have been assigned to supply, establish and maintain meters to the allocated regions and to receive payments from the government for more than 10 years.
Discs from transmission networks to consumers, tender, award contracts and responsible for paying timely payment to service providers.
Discoms initially encountered various difficulties to integrate IT systems with counter data management systems, to overcome the consumer hesitations and misinformation about intelligent meters, to raise awareness, to raise awareness and to eliminate data safety concerns.
Bajaj, “now relieves integration difficulties with discs and consumer resistance lower, adoption will accelerate,” he said.
However, since they may disrupt cash flows and delay the project execution, delays or defaults in payments by Discoms continue to be a risk for investors. State Discs, LaAccording to the Indian Reserve Bank report in December 6.5 Lakh Crore.
“The application is demanding a significant capital, but the players in partnership with infra funds,” Avendus Capital Infrastructure and Real Assets Investment Banking President Preteek said. He said.
Refund and exit potential
Investors bet that positive smart meter policies and executive moments will turn into continuous growth.
“For investors, state-supported payments for investors and 15-16%of the annual return for 10 years is expected low-risk, annual income-like game.”
According to Anand Rath Investment Banking Director Vipin Singhal, the facilities, which are expected to grow at ~ 25% CAGR in the next 3-4 years, are expected to offer a return potential to the solid growth of the sector.
In the field of renewable energy and intelligent infrastructure, it sees both the main and small and medium -sized business (SMEs) lists. Singhal emphasized how EPPELTON engineers, a manufacturer of smart meters, the NSE SME IPO, even small companies step into the agenda.
EPPELTON engineers shares are listed as 90% premium La243.20 NSE SME on Tuesday.
Singhal, “PM-Book and similar government plans (solar pumps and smart water meters) such as GK energy lifting schemes such as a few engineering, supply and construction/product player to touch the capital markets in the near future we see.
PM-Kusum refers to Urja Suraksha Evam Utthaan Mahabhiyan, a plan to promote solar energy in agriculture.
The sector is still in a new stage. Most companies are small and are not yet ready for public markets, and the merger and purchasing activity are limited.
Actis Bansal, “But I expect consolidation to meet in the next two to three years as the market matures.”
For now, companies focus on providing smart meter contracts through ongoing government proposals.
