Citibank Warns of ‘wave of Project Bankruptcies’ in Wind, Solar


Citibank Warns of ‘wave of Project Bankruptcies’ in Wind, Solar

Citibank fears that there could be “a wave of bankruptcies” of wind and solar projects in about five years, consequent upon the low prices at which the energy companies will sell electricity.

Speaking at the RE-INVEST Conference-cum-expo, an event of the renewable energy industry organised here by the government of India, Michael Eckhart, Managing Director and Head – Environment Finance, Corporate and Investment Banking division of Citi, suggested that bidders quote two numbers — the tariff at which they would sell electricity and their ‘debt service coverage ratio’.

This would enable the tenderer to pick the bid that not only offers the lowest tariff, but also has the ability to repay its loans from the project earnings. Read more

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