ICRA downgrades around 1.9 GW of wind and solar power projects
NEW DELHI : In what may impact India’s emerging green economy, rating agency ICRA has downgraded around 1.9 gigawatts (GW) of wind and solar power projects in its rated portfolio and has also revised the rating outlook for some projects.
This comes in the backdrop of India’s clean energy sector going through a crisis. With record low solar and wind power tariffs, banks are wary of lending to developers as they suspect the viability of projects that have agreed to sell power at rock-bottom tariffs. There are other problems such as delay in payment by state-run power distribution companies that range from two months to 15 months and non-allocation of land-to-wind power projects, as well as transmission- and connectivity-related challenges.
