The main difference reflects their energy generation approaches: the Green energy sector focuses exclusively on renewable sources like solar, wind and hydroelectric, while the power sector encompasses all electricity generation including thermal, nuclear and renewable sources.
Table of Contents
Green Energy Sector Overview
The green energy sector specializes in renewable power generation through environmentally sustainable technologies. Companies develop and operate solar, wind and hydroelectric facilities while driving innovation in clean energy solutions and storage systems.
These organizations maintain continuous research and development efforts to improve efficiency and reduce costs. The sector demonstrates growing importance in addressing climate change while ensuring energy security.
Power Sector Overview
The power sector forms the backbone of electricity generation and distribution through diverse sources including thermal, nuclear and renewable energy. Companies operate large-scale power plants while maintaining extensive transmission networks.
The sector ensures continuous electricity supply through integrated operations spanning generation, transmission and distribution. Companies focus on capacity expansion and efficiency improvement while managing grid stability.
Best Stocks In The Green Energy Sector
The below table shows the Best Stocks In The Green Energy Sector based on 1Y return.
| Name | Close Price (rs) | 1Y Return (%) |
| Waaree Renewable Technologies Ltd | 1015.95 | 68.83 |
| Inox Wind Ltd | 165.57 | 53.79 |
| Suzlon Energy Ltd | 57.43 | 39.56 |
| K.P. Energy Ltd | 456.35 | 37.53 |
| JSW Energy Ltd | 557.55 | 14.98 |
| Tata Power Company Ltd | 365.90 | 5.69 |
| NHPC Ltd | 79.02 | 4.04 |
| SJVN Ltd | 98.90 | -4.81 |
| Orient Green Power Company Ltd | 16.07 | -21.08 |
| Adani Green Energy Ltd | 1045.70 | -37.79 |
Top Stocks In The Power Sector
The below table shows the Top Stocks In The Power Sector based on 1Y return.
| Name | Close Price (rs) | 1Y Return (%) |
| Torrent Power Ltd | 1437.95 | 50.69 |
| Power Grid Corporation of India Ltd | 302.35 | 27.06 |
| JSW Energy Ltd | 557.55 | 14.98 |
| NTPC Ltd | 324.30 | 7.17 |
| Tata Power Company Ltd | 365.90 | 5.69 |
| NLC India Ltd | 235.10 | 4.56 |
| NHPC Ltd | 79.02 | 4.04 |
| Adani Power Ltd | 528.75 | 2.16 |
| SJVN Ltd | 98.90 | -4.81 |
| Adani Green Energy Ltd | 1045.70 | -37.79 |
Fundamental Analysis Of Green Energy Sector
Waaree Renewable Technologies Ltd
Waaree Renewable Technologies is an engineering, procurement and construction (EPC) company focused on the renewable energy sector. The company specializes in solar EPC business, offering comprehensive solutions including rooftop solar, floating solar and ground-mounted projects through both CAPEX and RESCO models.
• Market Cap: ₹10,590.93 Cr
• Current Share Price: ₹1,015.95
• Returns: 1Y (68.83%), 1M (-22.87%), 6M (-45.84%)
• 5Y Average Net Profit Margin: -4.14%
• Dividend Yield: 0.10%
• 5Y CAGR: -4.14%
• Sector: Construction & Engineering
Inox Wind Ltd
Inox Wind is an integrated wind energy solutions provider manufacturing wind turbine generators (WTGs). With three manufacturing plants in Gujarat, Himachal Pradesh and Madhya Pradesh, the company has a cumulative manufacturing capacity of 1,600 MW, serving IPPs, utilities, PSUs and corporate clients.
• Market Cap: ₹21,586.92 Cr
• Current Share Price: ₹165.57
• Returns: 1Y (53.79%), 1M (-9.46%), 6M (10.67%)
• 5Y Average Net Profit Margin: -48.96%
• 5Y CAGR: -48.96%
• Sector: Heavy Electrical Equipments
Suzlon Energy Ltd
Suzlon Energy is a global renewable energy solutions provider specializing in wind turbine generators (WTGs). Founded in India, the company operates in 17 countries across multiple continents, offering advanced products like S144, S133 and S120 Wind Turbine Generators, along with comprehensive operations and maintenance services.
• Market Cap: ₹78,380.56 Cr
• Current Share Price: ₹57.43
• Returns: 1Y (39.56%), 1M (-10.63%), 6M (4.27%)
• 5Y Average Net Profit Margin: -9.16%
• 5Y CAGR: -9.16%
• Sector: Renewable Energy Equipment & Services
K.P. Energy Ltd
K.P. Energy specializes in wind farm development and related services in India. The company provides comprehensive solutions from siting wind farms to operations and maintenance, serving equipment manufacturers, independent power producers and institutional investors through three segments: Infrastructure Development, Power Sales and O&M Services.
• Market Cap: ₹3,043.40 Cr
• Current Share Price: ₹456.35
• Returns: 1Y (37.53%), 1M (-14.54%), 6M (11.00%)
• 5Y Average Net Profit Margin: 8.43%
• Dividend Yield: 0.10%
• 5Y CAGR: 8.43%
• Sector: Renewable Energy
JSW Energy Ltd
JSW Energy is a major power generation company focusing on both thermal and renewable energy sources. The company operates significant plants including Baspa (300 MW), Karcham Wangtoo (1091 MW) and facilities in Barmer, Vijaynagar and Ratnagiri, demonstrating its diverse power generation portfolio.
• Market Cap: ₹97,296.75 Cr
• Current Share Price: ₹557.55
• Returns: 1Y (14.98%), 1M (-14.31%), 6M (-21.45%)
• 5Y Average Net Profit Margin: 14.12%
• Dividend Yield: 0.34%
• 5Y CAGR: 14.12%
• Sector: Power Generation
Tata Power Company Ltd
Tata Power is India’s largest integrated power company, engaged in generation, transmission and distribution of electricity. The company operates across multiple segments including thermal, renewable energy and power distribution, while also providing project management services, infrastructure management and trading services through its extensive network.
• Market Cap: ₹116,917.47 Cr
• Current Share Price: ₹365.9
• Returns: 1Y (5.69%), 1M (-7.41%), 6M (-13.71%)
• 5Y Average Net Profit Margin: 4.30%
• Dividend Yield: 0.55%
• 5Y CAGR: 4.30%
• Sector: Power Transmission & Distribution
NHPC Ltd
NHPC is India’s premier hydropower company, currently constructing eight hydro projects with 6,434 MW capacity. The company operates multiple power stations including Salal, Dulhasti and Kishanganga, while also providing comprehensive consultancy services for hydropower project development, operation and modernization.
• Market Cap: ₹79,375.87 Cr
• Current Share Price: ₹79.02
• Returns: 1Y (4.04%), 1M (-3.11%), 6M (-26.36%)
• 5Y Average Net Profit Margin: 31.23%
• Dividend Yield: 2.40%
• 5Y CAGR: 31.23%
• Sector: Renewable Energy
SJVN Ltd
SJVN is a diversified power company engaged in hydro, thermal, wind and solar power generation. The company has expanded into wind power with projects like the 47.6 MW Khirvire Wind Power Project and 50 MW Sadla Wind Power Project, along with operating 81.3 MW of solar projects.
• Market Cap: ₹38,865.67 Cr
• Current Share Price: ₹98.9
• Returns: 1Y (-4.81%), 1M (-9.62%), 6M (-31.41%)
• 5Y Average Net Profit Margin: 41.40%
• Dividend Yield: 1.82%
• 5Y CAGR: 41.40%
• Sector: Renewable Energy
Orient Green Power Company Ltd
Orient Green Power specializes in renewable energy generation, primarily wind energy. The company manages a substantial portfolio of 402.3 MW wind assets distributed across Tamil Nadu, Andhra Pradesh, Gujarat and Karnataka in India, along with a 10.5 MW wind farm in Croatia, demonstrating its international presence.
• Market Cap: ₹1,885.06 Cr
• Current Share Price: ₹16.07
• Returns: 1Y (-21.08%), 1M (-4.57%), 6M (-15.05%)
• 5Y Average Net Profit Margin: 3.63%
• 5Y CAGR: 3.63%
• Sector: Renewable Energy
Adani Green Energy Ltd
Adani Green Energy is a major renewable power generation company developing, building and operating utility-scale grid-connected solar, wind and hybrid projects across India. With operations in 91 locations spanning multiple states, the company sells power through long-term PPAs and merchant arrangements.
• Market Cap: ₹165,642.28 Cr
• Current Share Price: ₹1,045.7
• Returns: 1Y (-37.79%), 1M (1.00%), 6M (-39.04%)
• 5Y Average Net Profit Margin: 7.01%
• 5Y CAGR: 7.01%
• Sector: Renewable Energy
Fundamental Analysis Of Power Sector
Torrent Power Ltd
Torrent Power has established itself as an integrated power utility with a balanced portfolio across generation, transmission and distribution. The company operates 4,110 MW of total generation capacity, including 3,092 MW thermal and 787 MW renewable energy, along with significant transmission infrastructure through 249 km of 400 kV lines.
• Market Cap: ₹72,458.81 Cr
• Current Share Price: ₹1,437.95
• Returns: 1Y (50.69%), 1M (-0.66%), 6M (-4.72%)
• 5Y Average Net Profit Margin: 7.37%
• Dividend Yield: 1.06%
• 5Y CAGR: 35.54%
• Sector: Power Transmission & Distribution
Power Grid Corporation of India Ltd
Power Grid serves as India’s central power transmission utility, specializing in Inter-State Transmission System development and operation. Beyond power transmission, they’ve diversified into telecom services utilizing their transmission infrastructure and providing comprehensive consultancy services across the power sector.
• Market Cap: ₹281,203.76 Cr
• Current Share Price: ₹302.35
• Returns: 1Y (27.06%), 1M (-2.93%), 6M (-10.71%)
• 5Y Average Net Profit Margin: 31.67%
• Dividend Yield: 3.72%
• 5Y CAGR: 21.79%
• Sector: Power Transmission & Distribution
JSW Energy Ltd
JSW Energy operates as a diversified power generation company with a significant presence in both thermal and renewable energy sectors. Their portfolio includes strategically located plants like the 1,091 MW Karcham Wangtoo hydro plant and the Barmer thermal plant, demonstrating their balanced approach to power generation across multiple sources.
• Market Cap: ₹97,296.75 Cr
• Current Share Price: ₹557.55
• Returns: 1Y (14.98%), 1M (-14.31%), 6M (-21.45%)
• 5Y Average Net Profit Margin: 14.12%
• Dividend Yield: 0.34%
• 5Y CAGR: 53.09%
• Sector: Power Generation
NTPC Ltd
NTPC stands as India’s largest power generation company, operating 89 power stations through various ownership structures. Beyond conventional power generation, they’ve expanded into renewable energy, mining and waste management through subsidiaries like NTPC Green Energy Limited, demonstrating their evolution towards a diversified energy company.
• Market Cap: ₹314,462.88 Cr
• Current Share Price: ₹324.3
• Returns: 1Y (7.17%), 1M (0.54%), 6M (-13.17%)
• 5Y Average Net Profit Margin: 11.03%
• Dividend Yield: 2.39%
• 5Y CAGR: 22.59%
• Sector: Power Generation
Tata Power Company Ltd
Tata Power represents one of India’s most integrated power companies with operations spanning generation (both conventional and renewable), transmission and distribution. Their diversified portfolio includes significant renewable energy assets alongside traditional power infrastructure, positioning them well for the energy transition.
• Market Cap: ₹116,917.47 Cr
• Current Share Price: ₹365.9
• Returns: 1Y (5.69%), 1M (-7.41%), 6M (-13.71%)
• 5Y Average Net Profit Margin: 4.30%
• Dividend Yield: 0.55%
• 5Y CAGR: 43.78%
• Sector: Power Transmission & Distribution
NLC India Ltd
NLC India combines mining operations with power generation, operating 30.1 MTPA of lignite mining and 20 MTPA of coal mining capacity. Their power portfolio includes 3,640 MW of lignite-based thermal power and 1,421.06 MW of renewable energy capacity, demonstrating their transition from pure mining to an integrated energy company.
• Market Cap: ₹32,599.83 Cr
• Current Share Price: ₹235.1
• Returns: 1Y (4.56%), 1M (-3.36%), 6M (-12.63%)
• 5Y Average Net Profit Margin: 10.10%
• Dividend Yield: 1.28%
• 5Y CAGR: 30.97%
• Sector: Metals – Diversified
NHPC Ltd
NHPC leads India’s hydroelectric power development with multiple large projects totalling 6,434 MW under construction. Their portfolio includes iconic projects like Salal and Kishanganga, complemented by comprehensive consultancy services in hydropower development, establishing them as a specialist in renewable energy.
• Market Cap: ₹79,375.87 Cr
• Current Share Price: ₹79.02
• Returns: 1Y (4.04%), 1M (-3.11%), 6M (-26.36%)
• 5Y Average Net Profit Margin: 31.23%
• Dividend Yield: 2.40%
• 5Y CAGR: 25.04%
• Sector: Renewable Energy
Adani Power Ltd
Adani Power stands as India’s largest private thermal power producer with 12,450 MW capacity, including 12,410 MW thermal and 40 MW solar. Their strategic plant locations near fuel sources and key consumption centres, along with a growing focus on efficiency and sustainability, strengthen their market position.
• Market Cap: ₹203,935.65 Cr
• Current Share Price: ₹528.75
• Returns: 1Y (2.16%), 1M (6.86%), 6M (-24.05%)
• 5Y Average Net Profit Margin: 14.26%
• Dividend Yield: 0%
• 5Y CAGR: 53.15%
• Sector: Power Generation
SJVN Ltd
SJVN has evolved from a pure hydropower company to a diversified power generator, with projects across the hydro, wind and solar sectors. Their expansion includes the 47.6 MW Khirvire Wind Project and 50 MW Sadla Wind Project, alongside thermal power and transmission capabilities, showcasing their commitment to balanced energy development.
• Market Cap: ₹38,865.67 Cr
• Current Share Price: ₹98.9
• Returns: 1Y (-4.81%), 1M (-9.62%), 6M (-31.41%)
• 5Y Average Net Profit Margin: 41.40%
• Dividend Yield: 1.82%
• 5Y CAGR: 29.94%
• Sector: Renewable Energy
Adani Green Energy Ltd
Adani Green Energy has positioned itself as a major renewable energy developer with operations across 91 locations in India. Their portfolio spans utility-scale solar, wind and hybrid projects, with strategically located assets across multiple states and a business model built on long-term PPAs for revenue stability.
• Market Cap: ₹165,642.28 Cr
• Current Share Price: ₹1,045.7
• Returns: 1Y (-37.79%), 1M (1.00%), 6M (-39.04%)
• 5Y Average Net Profit Margin: 7.01%
• Dividend Yield: 0%
• 5Y CAGR: 38.90%
• Sector: Renewable Energy
Green Energy Sector Performance & Growth
The below table shows the Green Energy Sector Performance & Growth based on 5 Year’s Net Profit Margin.
| Name | Close Price (rs) | 5Y Avg Net Profit Margin (%) |
| SJVN Ltd | 98.90 | 41.40 |
| NHPC Ltd | 79.02 | 31.23 |
| JSW Energy Ltd | 557.55 | 14.12 |
| K.P. Energy Ltd | 456.35 | 8.43 |
| Adani Green Energy Ltd | 1045.70 | 7.01 |
| Tata Power Company Ltd | 365.90 | 4.30 |
| Orient Green Power Company Ltd | 16.07 | 3.63 |
| Waaree Renewable Technologies Ltd | 1015.95 | -4.14 |
| Suzlon Energy Ltd | 57.43 | -9.16 |
| Inox Wind Ltd | 165.57 | -48.96 |
Power Sector Performance & Growth
The below table shows the Power Sector Performance & Growth based on 5 Year’s Net Profit Margin.
| Name | Close Price (rs) | 5Y Avg Net Profit Margin (%) |
| SJVN Ltd | 98.90 | 41.40 |
| Power Grid Corporation of India Ltd | 302.35 | 31.67 |
| NHPC Ltd | 79.02 | 31.23 |
| Adani Power Ltd | 528.75 | 14.26 |
| JSW Energy Ltd | 557.55 | 14.12 |
| NTPC Ltd | 324.30 | 11.03 |
| NLC India Ltd | 235.10 | 10.10 |
| Torrent Power Ltd | 1437.95 | 7.37 |
| Adani Green Energy Ltd | 1045.70 | 7.01 |
| Tata Power Company Ltd | 365.90 | 4.30 |
Government Policies & Incentives For The Green Energy and Power Sector
Government policies and incentives for the green energy sector focus on tax benefits, subsidies and favourable regulations. Key initiatives include the National Solar Mission, FAME India Scheme for EVs and production-linked incentives (PLI) to promote renewable energy adoption and sustainability.
Additional incentives include viability gap funding (VGF), accelerated depreciation and renewable purchase obligations (RPOs) to attract private investment. Policies supporting green hydrogen, wind and hydro projects, along with relaxed FDI norms, aim to strengthen India’s transition to a clean energy economy.
Challenges Faced By the Green Energy and Power Sector
The main challenges include infrastructure development needs, grid integration complexities and operational efficiency requirements affecting both sectors’ growth and reliability.
- Infrastructure Requirements: Both sectors need significant investment in generation capacity, transmission networks and distribution systems while managing technological transitions and grid stability.
- Operational Efficiency: Managing power generation costs, transmission losses and distribution efficiency while ensuring reliable supply and environmental compliance presents ongoing operational challenges.
Future Outlook Of Green Energy and Power Sector
Both sectors demonstrate strong growth potential while undergoing significant transformation. Green energy expands through improving technology and falling costs, while the power sector evolves by integrating more renewable sources into the traditional grid system.
The sectors increasingly converge as power companies adopt hybrid models, combining conventional and renewable generation. This integration promises enhanced grid stability while supporting environmental sustainability goals.
How to invest in the Green Energy and Power Sector Stocks?
Start by opening a demat account with Alice Blue and thoroughly researching companies across both sectors. Focus on generation capacity, technological capabilities, operational efficiency metrics and regulatory compliance while understanding grid dynamics.
Monitor policy developments, technological advancements and market trends while maintaining a systematic investment approach. Consider both sectors’ complementary roles in energy security and environmental sustainability.
Difference Between Power Sector And Green Energy Sector – Conclusion
- The main difference between green energy and the power sector lies in their energy sources. Green energy relies solely on renewables, while the power sector includes all forms of electricity generation, including thermal, nuclear and renewable sources.
- The green energy sector focuses on renewable power generation and advancing solar, wind and hydroelectric technologies. It emphasizes sustainability, innovation and efficiency improvements while playing a crucial role in mitigating climate change and enhancing global energy security.
- The power sector manages electricity generation, transmission and distribution through diverse energy sources, including thermal, nuclear and renewables. It ensures a stable electricity supply, focusing on grid expansion, efficiency improvements and capacity enhancements to meet growing energy demands.
- Government policies support green energy through tax incentives, subsidies and initiatives like the National Solar Mission and FAME India Scheme. These measures encourage investment, promote sustainability and facilitate India’s transition to a renewable energy-driven economy.
- The main challenges include infrastructure expansion, grid integration issues and operational efficiency concerns that impact both green energy and power sectors, affecting their reliability, scalability and overall growth in a transitioning energy landscape.
- Both sectors are growing rapidly, with green energy advancing through cost reductions and innovation while the power sector integrates more renewables. Their convergence fosters hybrid models, improving grid stability and supporting environmental sustainability goals.
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Green Energy Sector Vs Power Sector – FAQs
The green energy sector specializes in renewable power generation through solar, wind and hydroelectric technologies. Companies focus on developing sustainable energy solutions while driving environmental conservation through clean power generation.
The power sector manages electricity generation, transmission and distribution through diverse sources including thermal, nuclear and renewable energy. Companies ensure reliable power supply while maintaining extensive grid infrastructure.
The main distinction lies in their scope: The green energy sector focuses exclusively on renewable sources, while the power sector encompasses all electricity generation methods. Both contribute to energy security but through different technological approaches.
Best Stocks In The Green Energy Sector #1: Adani Green Energy Ltd
Best Stocks In The Green Energy Sector #2: Tata Power Company Ltd
Best Stocks In The Green Energy Sector #3: JSW Energy Ltd
Best Stocks In The Green Energy Sector #4: NHPC Ltd
Best Stocks In The Green Energy Sector #5: Suzlon Energy Ltd
Best Stocks In The Green Energy Sector based on market capitalization.
Best Stocks In The Power Sector #1: NTPC Ltd
Best Stocks In The Power Sector #2: Power Grid Corporation of India Ltd
Best Stocks In The Power Sector #3: Adani Power Ltd
Best Stocks In The Power Sector #4: Adani Green Energy Ltd
Best Stocks In The Power Sector #5: Tata Power Company Ltd
Best Stocks In The Power Sector based on market capitalization.
The renewable energy sector demonstrates consistent returns of 15-20% annually through expanding clean energy adoption. Companies show significant revenue growth of ₹100-500 crore annually, supported by improving technological efficiency and favourable regulatory environments.
The power sector maintains a steady CAGR of 8-10%, reflecting essential electricity demand growth, infrastructure expansion and modernization initiatives. Growth encompasses both conventional and renewable capacity addition while improving transmission efficiency.
The main challenges include managing fuel supply costs, reducing transmission losses, improving collection efficiency and upgrading ageing infrastructure. Success requires balancing reliability requirements with environmental considerations and cost optimization.
Foreign Institutional Investors contributed approximately ₹80,000-100,000 crore to India’s green energy sector during the past year, demonstrating strong international confidence in renewable energy potential and sustainability initiatives.
Green energy companies maintain an average Return on Capital Employed (ROCE) of 12-15%, reflecting efficient capital utilization despite significant infrastructure investments in renewable generation capacity and technology development.
Current power sector valuations reflect essential service nature, stable revenue streams and growth potential through modernization. While some segments show premium valuations, metrics align with infrastructure quality and reliability requirements.
The main risks include policy changes, technological disruption, grid integration challenges, competitive pressures and market volatility. Success depends on managing these factors while maintaining operational efficiency and innovation capabilities.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
