Smart meters attract PE to India's power sector

Copyright © HT Digital Streams Limit all rights reserved. Smart Meeting: The following investment limit for PE firms in India’s power sector The government will invest an estimated $ 30 billion to install 250 million smart meters in the country, Gic and Genus said in July 2023 (Reuters) ‘s summary The way the government structured the launch of Smart Meters created a strong basis for investment and long-term returns. Smart electricity measurement in India may provide a promising and largely unused opportunity for private equity investors, given the potential of $ 30 billion and some recent investments in a sector traditionally dominated by the government’s aid programs. Actis invested $ 200 million in a joint venture at EDF India in February that will deploy smart meter infrastructure in the country. Singapore’s Gic invested £ 519 crore in Jaipur-based genus Power Infrastructures in July 2023. They agreed to set up a platform to install smart meters and provide associated services, with an initial pipeline with a capital outlay of about $ 2 billion. The government will invest an estimated $ 30 billion to install 250 million smart meters in the country, Gic and Genus said in July 2023. I invested Capital $ 100 million for a controlling stake in Polaris Smart Metering in February 2023. IoT-based smart meter company Probus raised $ 3 million in March 2023 and $ 5 million in February 2025 from the Unicorn India-founded India. In March 2024, Kimbal Technologies raised $ 5 million in a first funding round led by Nivesaay. Smart measurement is rapidly appearing as a compelling port for private investment in India’s power sector, says Abhishek Bansal, a partner at Actis, a private equity firm focused on infrastructure and energy. What does the interest drive? Smart meters are digital devices that offer accurate and live consumer data, which can monitor and manage utility and consumers more effectively. This can improve operational efficiencies, reduce technical and commercial losses and increase the finances of power distribution companies (Discoms). What makes the opportunity in India, according to Bansal, is the way the government has structured the launch: long-term agreements, annual payments and an ambitious target to install 250 million smart meters-which combines everything to create a strong base for investor confidence and long-term returns. “It is a well -structured, scalable opportunity that offers both impact and steady returns,” Bansal said. According to Shivam Bajaj, founder of Avener Capital, an infrastructure-oriented advice firm for private equity, the goal is to install 250 million smart meters by March 2026, depends on two main groups of enterprises: Advanced Metering Infrastructure Service suppliers and manufacturers of original equipment (OEMS). The providers of infrastructure services such as those erected by Actis-EDF India and GIC genus are received for ten years of contracts by state enterprises to install and maintain smart meters and associated infrastructure. It is paid annually and can also sell insights for consumption data to aid programs and government agencies. OEMs, which design and manufacture the digital devices, also offer significant growth opportunities over the next four to five years, Bajaj added. “OEMs expand the capacity, which will require fresh funding,” he said, adding that intellismart, HPL, genus and Polaris are already expanding their manufacturing units. According to the Power Ministry’s update on January 18, projects that cover 197.9 million smart consumer meters have been approved and approximately 115 million smart consumer meters are allocated and installed. “Of the 25 crore (250 million) meters to be replaced, the installed capacity so far is only about 3 crore.” There is the potential that a few more platforms need to be erected over the next few years and the meter manufacturers continue to invest in capacity expansion. ” The case for smart meters Most houses still use analog meters, which follows the total use and cannot support dynamic prices based on time of use. A program begins to replace analog meters with smart. -Project to implement, including the integration of their IT systems with meter -data management systems, overcoming the consumer hesitation and the wrong information about smart meters, awareness of awareness and addressing problems with data security. However, payments by discoms remain a risk to investors because it can disrupt cash flow and delay the execution of the project. Managing director and head of infrastructure and real assets investment banking at Avendus Capital. 15-16%, “Jhawar added. According to Vipin Singhal, director of Anand Rathi Investment Banking, is expected to provide clever measurement companies a yield potential that matches the strong growth of the sector, with installations expected to grow over the next 3-4 years at ~ 25% Cagr. Infrastructure space target. and construction/product players such as GK energy leverage schemes such as PM coasts and similar government schemes (the installation of solar pumps and smart water meters) to tap capital markets in the near future, “Singhal said. to promote solar energy in agriculture. Government offers.