ICRA reviews rating outlook for 1.9 GW of solar and wind projects
Category: #energy-and-environment  By Anchal Solanki  Date: 2019-10-18
  • share
  • Twitter
  • Facebook
  • LinkedIn
ICRA reviews rating outlook for 1.9 GW of solar and wind projects

ICRA has reportedly revised the rating outlook of one-third of its rated portfolio for wind and solar

Rating Agency ICRA has reportedly downgraded approximately 1.9 gigawatts (GW) of solar and wind power projects in its rated portfolio. The agency recently mentioned in a statement that it has revised the rating outlook of nearly one-third of its rated portfolio for wind and solar. The announcement seemingly comes at a time when India’s clean energy sector is experiencing a crisis. Experts claim that this move by the ICRA might impact India’s emerging green economy.

With solar and wind power sectors generating significantly low tariffs, banks are being watchful over lending to developers. Apparently, they suspect the feasibility of solar and wind projects that have agreed to sell electricity at low tariffs.

Payment delays by state-run power distribution companies ranging from two to fifteen months have evidently added up to the existing problems. Moreover, non-allocation of land-to-wind power projects along with challenges related to transmission and connectivity are further slowing down the renewable power sector growth, analysts noted.

Nirmala Sitharaman, Minister of Finance and Minister of Corporate Affairs, reportedly assured global investors about the sanctity of India’s power purchase contracts.

Adding to this, renewable energy minister Raj Kumar Singh stated that state-run distribution companies remain a major challenge.

Discoms are apparently the weakest link in the power sector primarily due to increasing power purchase costs, low collection, inadequate tariff hikes and disbursement of subsidies. In addition, mounting dues from the government have resulted in distribution companies exhibiting poor records of payments.

According to industry experts, despite of India’s solar and power sector currently facing a number of challenges, the country is optimistic about reaching its goal of generating 450 GW of renewable energy by 2030. Evidently, 83,000 MW worth of clean energy capacity of has already been set up, with 29,000 MW currently under construction.

Analysts forecast that India’s green economy will require investments of nearly $80 billion up to 2022, climbing substantially to approximately $250 billion over 2023-30.

Source Credits –https://www.livemint.com/companies/news/icra-downgrades-around-1-9-gw-of-wind-and-solar-power-projects-11571230295647.html

  • share
  • Twitter
  • Facebook
  • LinkedIn

About Author

Anchal Solanki

Anchal Solanki    

A civil engineer by qualification, Anchal Solanki forayed into the domain of content writing in the midst of her graduation, embarking on the career path of a successful freelancer. Equipped with a short-term experience in market research, Anchal currently writes news...

Read More >>

More News By Anchal Solanki

Global Vibration Sensors Market: Growth Opportunities to Tap into in 2020-2026
Global Vibration Sensors Market: Growth Opportunities to Tap into in 2020-2026
By Anchal Solanki

An inherent blend of vital market definitions, the Vibration Sensors Market report comprises details pertaining to the overall scope of the industry, pivotal insights, and parameters such as the industry ecosystem analysis, growth drivers responsible...

Global Solid State Drive Market: Things to Focus on to Ensure Long-term Success 2020-2026
Global Solid State Drive Market: Things to Focus on to Ensure Long-term Success 2020-2026
By Anchal Solanki

The Solid State Drive Market report encompasses an in-depth analysis of the business space in question. All the growth facilitators responsible for furling the revenue scope of this industry are mentioned in the study in conjunction with the competit...

Global Universal Flash Storage Market: Leading Segments and their Growth Drivers 2020-2026
Global Universal Flash Storage Market: Leading Segments and their Growth Drivers 2020-2026
By Anchal Solanki

The study titled ‘Global Universal Flash Storage Market Research Report’ includes a detailed research undertaken by analysts as well as an in-depth analysis of the global market. A detailed, highly extensive study of this market alongside...