Payment delays, signing of power sale-purchase agreements key challenges facing RE sector: Icra

Delays in payments to renewable energy (RE) developers besides slow progress in the signing of power purchase and sale agreements by procurers are among the key challenges constraining the growth of the sector, according to Icra.

Girishkumar Kadam, Senior Vice President and Co-Group Head, ICRA Ratings, said, the investment prospects in the RE sector are expected to remain strong, given the policy impetus with a target to reach 450 GW by the financial year 2030, and competitive tariffs. The capacity addition in the power sector over the medium term will be driven by the RE segment, led by a strong project pipeline of close to 40 GW as of date.