What are Power REITs?
Power REITs invest in power generation and distribution infrastructure including substations, power plants, and energy facilities.
- Essential Utility: Power infrastructure is critical national asset
- Regulated Returns: Tariffs approved by electricity regulatory commissions
- Long Asset Life: Power infrastructure has 25-40 year operational life
- Demand Growth: India's power consumption growing at 6-8% annually
- Government Priority: Massive investment planned in power sector
How Power REITs Work
These REITs own and manage power infrastructure assets:
- Trust acquires operational power generation and distribution assets
- Revenue from regulated power tariffs and capacity charges
- Long-term Power Purchase Agreements ensure stable income
- Distributions from operational cash flows to unitholders
- Asset expansion through acquisition of new power facilities