“As more households move up the ladder, they buy more air conditioners, washing machines, appliances—that’s driving the growth,” Bhandari told CNBC-TV18, explaining the key message behind Goldman’s latest report titled The Great India Energy Climb.
However, meeting this demand sustainably will require more than just solar panels. Bhandari cautioned that thermal power will continue to play a key role in the energy mix for the next 5–10 years due to the intermittent nature of renewables and the long build time for alternatives like hydro, gas, and nuclear. “Thermal coal still is an important option for India’s power mix,” he said, noting a potential energy deficit of up to 9% by FY35 if current capacity targets hold.
The report also highlights new supply bottlenecks emerging in India’s energy sector—not in solar modules, but in upstream materials like polysilicon and battery cell manufacturing, which remain critical for expanding clean power storage.
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Additionally, distribution remains a weak link. While India has scaled up generation and transmission impressively, transmission and distribution losses still hover around 18%, nearly double the global average. Fixing last-mile delivery and smart meter rollouts will be vital.
Also Read: Goldman Sachs sees India GDP growth holding steady at 6.2% this year despite global risks
For investors, Bhandari offered a clear strategy: focus on companies solving these bottlenecks. Whether it’s battery manufacturing, distribution upgrades, or reliable power generation, he advised, “Own the bottlenecks directly.”
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