Moody’s upgrades power sector outlook to stable on generation uptick

Mumbai: Rating agency Moody’s on Monday upgraded the outlook on the power sector to stable from negative, citing the fifth consecutive month of generation growth in January. The Central Electricity Authority last week reported a 3.1 per cent year-on-year growth in power generation in January, making it the fifth consecutive month of generation growth after six months of decline driven by coronavirus pandemic.

For the first 10 months of the fiscal 2021, power generation growth declined 2.9 per cent year-on, compared to earlier expectations of a minimum 4-5 per cent decline. But renewable energy generation (excluding hydro power) grew 4.3 per cent during the same period and wind the weakest down 12 per cent.