The disruption caused by India’s low clean energy tariffs is playing out, with rating agency Crisil cautioning that the risk profile of wind projects will increase. In a report, Crisil said that under-construction projects, as part of the feed-in tariff (FiT) regime, may be put up for auction by the states to further lower tariffs.
While these projects didn’t have a power purchase agreement, work had started on them on the basis of the licences awarded by the states. Feed-in tariffs ensure a fixed price for wind power producers.
Also, the firms that have quoted such competitive tariffs may generate only 12% equity internal rate of return (IRR), even after assuming high plant load factor (PLF) of 33-35% and a lower cost of borrowing at 9-9.5%, said the study, exclusively shared with Mint. Read More…
Credit By: Live Mint
Latest posts by Livemint (see all)
- Ujjawala Scheme: Indian Oil, Others Defer Loan Recovery Up To 6 LPG Refills - March 24, 2018
- Vedanta Board Panel Approves Rs4,500 Crore NCD Issue - March 24, 2018
- Tata Steel Wins Bid To Acquire Bhushan Steel - March 24, 2018