Good morning my dear readers,

With a heavy heart, I will be taking a break from writing this newsletter and our Friday greetings.

I am largely unable to spare time like earlier and also, I feel the message I wanted to send across on Special Situations, Long term investing, Opportunistic SIP, The India Opportunity etc, we have covered a great deal of it already.

(More importantly, I just don't have the mental bandwidth to write with the same kind of love I used to do earlier. And I don't believe in mediocrity, I don't want to write just for the sake of it).

The journey of this newsletter has been great for me personally as well as the sheer amount of research I have had to do has really opened my own eyes to things.

I will miss the wife jokes in particular 😉.

So, this is not the last newsletter, but on 28th March 2024, we will end this tradition and it would have been a pleasure to have this monumental relationship with you.

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The Renewables sector opportunity in some numbers.

Recently our Power minister, Mr RK Singh said that the "peak power demand in 2030 could be 370-380 GW".

The government has fast tracked 80 GW of Thermal Power Plants as well.

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The indications are that the country's electricity demand will overshoot the supplies in the medium term.

While the government is working overtime and is actually doing a solid job on the matter, I think the situation presents an opportunity for long term investors in the Renewables sector.

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The fact that we are taking help of Thermal Power means the situation is worth monitoring.

By 2030, we will still be at a low base of renewables energy generation.

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Also by 2030, I believe we will have to stop relying on new Thermal Power additions.

Entire demand will have to be met by RE.

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Basically, it is likely that whatever power sector generation capacity was created over the last 50+ years, it will be doubled in the next 6-7 years!

And it won't stop there..

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Also read,

Elon Musk: AI will run out of electricity in 2025.

"I've never seen any technology advance faster than this."

The chip shortage may be behind us, but AI and EVs are expanding at such a rapacious rate that the world will face supply crunches in electricity and transformers next year, says Elon Musk.

"Then, the next shortage will be electricity. They won't be able to find enough electricity to run all the chips. I think next year, you'll see they just can't find enough electricity to run all the chips".

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This interview by Elon Musk shook me, frankly. I don't know if what he says will come true or not but he's someone I truly respect and hence I've made it my medium term mission to learn a lot more about the power situation facing the whole world, not just India.

There is potentially an opportunity here for long term investors.

Ofcourse, always consult with your financial advisor before doing anything in the stock market as it's a place of high risk.

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That is all from me today my friends.

See you next Friday! Stay safe and enjoy your coffee ☕.

(Sorry, please forgive any typos today, my eyes are open but I'm practically a Zombie this morning). 🧟🧟

My Best,

Neil Bahal

Chief of troops at Negen

Disclaimer: This newsletter prepared by Negen Capital Services Pvt. Ltd (Negen) is for educational and information purposes only. Negen is a SEBI registered Portfolio Manager and acting as an Investment Manager to AIFs registered with SEBI.

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