Rating agencies upgrade wind, solar sectors to stable outlook from negative

Favourable environment, bids driven by Centre & friendlier PPAs are major reasons for the upgrade

The wind and solar energy sectors in the country have received a stable outlook by rating agencies compared to a negative one earlier. The development comes on the backdrop of a favourable environment for the two sectors, as bids are being driven by Central Government agencies, and power purchase agreements (PPAs) are becoming favourable to developers in terms of addressing grid curtailment and termination issues.

India Ratings and Research (Ind-Ra) has retained a stable outlook on the solar sector and revised the outlook on wind to stable from negative for FY19.

The agency said development of guarantee funds by states/bidders, incentives to