Journal Press India^®

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It is estimated that power consumption in India would increase to 1,894.7 TWh by 2022. The growing demand for power is coupled with increasing concerns towards the environment. To address concerns towards the environment while meeting the rising power demand, governments are setting greater generation targets from renewable sources. In this backdrop, it is important to analyse whether generation of electricity from renewable sources results in a financial penalty or premium for the generating companies. The study compares the financial performance of 44 renewable energy generating companies to 100 traditional (non-renewable) power generating companies in India for the period of 2009-2018. Using panel regression models and independent sample -test, results indicate no significant difference between the financial performances of the two types of power generating companies. The study also concludes that the renewable energy companies add value in the economy similar to the traditional power sector companies.

Keywords

Renewable energy; India; Sustainable development; Panel regression; Power Sector.

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