Solar Generation In India Improved In FY24: Fitch Ratings

Solar Generation In India Improved In FY24: Fitch Ratings

In the financial year ending March 2024 (FY24), India saw improved power generation performance. However, overall power generation was slightly below the one-year P90 forecasts, Fitch Ratings reports.

Fitch Ratings, a credit rating organization headquartered in both New York and London, observed an increase in generation at the portfolio level. The company reported a 4% increase in generation in FY24 after new assets became operational during the year.

In its report, “Spotlight: Indian Renewable Energy Performance FY24,” the company rated the performance of the 10 rated Indian restricted groups (RGs). Fitch’s portfolio of wind and solar project-finance transactions improved in the financial year ended March 2024, but overall power generation remained below Fitch’s one-year P90 forecasts. Meanwhile, cash collection continued its upward trend since FY23, supported by reforms implemented by India’s central government.

The company its report, ‘Wind Under, Solar Tracking One-Year P90: The RGs are rated under our Renewable Energy Project Rating Criteria” found an addition of 110 wind and solar assets with a total capacity of 6,198 megawatts. As per the shared details, “Wind generation improved by 8% in FY24. This was 1% below our one-year P90 forecast but better than in FY23 when generation was 5% lower than the one-year P90. Solar generation increased by 2% in FY24 as new assets became operational, tracking our one-year P90 estimate. Solar performance was 1% above our FY23 one-year P90 estimate.”

The company cited in its findings that Fitch-rated restricted groups’ cash collection continued to improve in FY24, standing at around 100 days, down from about 140 in FY23, supported by the government’s Late Payment Surcharge scheme. Total collections improved for both wind and solar assets due to the clearance of overdue payments from most state distribution companies, as sovereign-owned entities and commercial and industrial customers have largely paid on time over the last few years.