Despite policy support, green energy still faces regulatory issues: Icra

Falling costs improve demand, but they affect cost competitiveness of pre-existing projects

Even as policy support and improving cost competitiveness provide strong outlooks for renewable energy in India, the sector continues to face regulatory challenges and viability concerns over falling tariffs, rating agency Icra said in a report on Tuesday.

"The long-term demand outlook for renewable energy (RE) is strongly aided by favourable policy support from the Government of India and the state governments of key states; as well as an improving tariff competitiveness of wind and solar power," the report said. 

"On the flip side, the sector continues to face regulatory challenges related to renewable power obligations (RPO) norms and its compliance, continuing