Diverse portfolios shield Indian renewable energy companies from wind sector challenges: Moody’s
New Delhi : As wind energy projects faced challenges between fiscal years 2021 and 2023, Moody’s Investors Service highlighted how broad-based portfolios have been instrumental in ensuring the resilience of rated Indian renewable energy firms. Solar projects, in particular, demonstrated strength, effectively countering the slack in wind energy outcomes.
During this period, solar ventures consistently met P-90 benchmarks, whereas wind undertakings experienced a 2.0% to 3.2% utilization shortfall. This discrepancy resulted in an 8%-10% drop in wind energy production among the portfolios of evaluated companies. Yet, the inherent diversity across these companies’ projects served as a protective cushion.
Moody’s emphasized, “Despite some hiccups in project outcomes, the commendable financial benchmarks of these firms fortified them against Advt significant setbacks. The presence of multiple projects under each rated
renewable energy entity in India disperses associated risks.”
Breaking down the geographic performance in 2023, Moody’s said that Karnataka accounted for 50% of the solar capacity that underperformed, followed by Telangana at 18%. The report further cautioned, “Regions
like Karnataka and Gujarat pose heightened curtailment threats for both wind and solar initiatives.” Summing up the three-year analysis, Moody’s stated that while total energy output from scrutinized projects marginally trailed P-90 estimates, the unwavering efficacy of solar undertakings balanced out the relative lull in wind-based ventures.
