Fitch Ratings reports that the performance of Indian renewable energy, including wind and solar project-finance transactions, declined in the financial year ending March 2025. The overall power generation was 4% below the agency’s one-year P90 forecasts.
Generation:
Wind energy was the primary driver of the generation drop. Wind load factors decreased by 8% in FY25 compared to the previous fiscal year, reaching their lowest level since FY22. The performance was 9% below the one-year P90 estimate.
Solar energy generation also saw a decline, with load factors falling by 3% against FY24. However, solar performance managed to track the one-year P90 estimate for the period.
Cash flow:
Despite the drop in generation, the report highlighted a positive trend in cash collection for the Fitch-rated restricted groups. Receivable days dropped to approximately 85 days from about 100 days at the end of FY24. The ratings agency attributes this improvement to state distribution companies clearing overdue payments. Additionally, commercial and industrial customers were noted for largely paying their dues on time.
