ICRA assigns stable outlook to India’s renewable energy sector
The outlook is supported by a strong project pipeline, competitive tariffs, and continued policy support. The demand outlook for domestic solar module manufacturers also remains favorable.
ReNew Power signs PPA for 400 MW round-the-clock supply
The Indian developer will build a 1,300 MW hybrid renewable energy capacity (900 MW wind plus 400 MW solar) supplemented with storage to ensure a round-the-clock supply. The project cost is estimated at approximately US$ 1.2 billion.
Electricity demand in India to grow at 6% in FY2022
Ratings agency ICRA maintains a negative outlook for thermal power generation despite a rise in electricity demand. The thermal plant load factor will remain subdued at 57%. The gap between the average cost of supply and the average tariff for discoms is estimated at 70-75 paise per unit for FY2022.
India could add 8.5 GW of solar in FY2022
Solar capacity addition in the fiscal year 2021-22 will surge, led by a strong project pipeline. Tariffs will go up amid rising module prices but will remain competitive at below INR 3/kWh (US$ 0.040/kWh).
Open-access solar faces regulatory headwinds amid favorable PPA demand
The overall open access charges in case of third-party sale of solar power have increased over a period of time. These vary widely across the key states ranging between INR 2-5 per unit.
Module price increases to moderate solar project returns
Solar module prices have increased by about 15-20% over the last 4-5 months to around 22-23 cents/watt as of date. As PV modules comprise about 50-55% of the overall project cost, such an increase in the module price level, if sustained, may moderate the debt service coverage metrics for developers by about 12-14 basis points.
India will reach 125 GW renewable capacity by December 2022
A new report by ICRA says large-scale solar in the country will likely achieve the 60 GW target set by the Indian government. Rooftop solar and wind, however, will see a shortfall.
ICRA downgrades 1.9 GW of wind, solar projects amid headwinds
Continuing delays in payments from utilities, regulatory uncertainty on tariff matters and tight financing have hit the industry hard.
India could add 7-7.5 GW solar capacity this fiscal, predicts ICRA
The solar capacity addition of 7-7.5 GW in FY2019-20 will be 15% higher than a subdued 6-6.5 GW in FY 2018-19. Of the total, 1 GW would come through open access/group captive route and grid-connected rooftop.
Singapore fund and British developer eye stake in UK government’s south Asian renewables company
U.K. developer Lightsource BP – in which oil and gas giant BP has a significant minority stake – and its Singapore fund partner EverSource Capital are reportedly ready to take up all the $100 million slice of Ayana Renewable Power which is being put up for sale.
