According to India Ratings and Research, solar energy projects continue to perform stably, with adequate debt service coverage and comfortable internal liquidity. The fall in module prices in the six months to February 2023 will be positive for projects under construction, it claimed.
India Ratings and Research has maintained a “stable” outlook for India’s solar energy sector for the financial year 2023-24, but maintained a “negative” outlook for wind power projects. It has changed the rating outlook for the thermal asset to “positive” from “stable”.
India added 14 GW of solar and 1.8 GW of wind generation capacity in 2022, according to analysts. However, wind projects are still plagued by production variability.
“Abolishing the reverse auction will allow developers to bid with a better risk-reward profile and improve capacity addition in the medium term,” the analysts said.
India Ratings and Research revised the outlook for thermal power projects to “positive” based on improving power demand, which could push plant utilization rates above 65, better visibility of coal cost pass-through and adequate liquidity.