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Coal-fired power capacities to come under the glare of sun, says Moody's 

April 5, 2016

Debjoy Sengupta, The Economic Times

Moody's Investors Service predicts that India will turn a power surplus country in the next 5 to 7 years as the share of solar capacities rise. It is expected to create challenges for thermal power companies including a drastic fall in their capacity utilisation. 

"At the same time, implementation of the aggressive renewable energy capacities - which are planned to grow to 175GW by 2022 compared to the current 37GW - will be challenging, given counterparty risk issues and the need for stable policy initiatives to support long term investments," MIS said in a statement. 

Abhishek Tyagi, a Moody's Vice President and Senior Analyst: "The most pronounced impact of a rising share of renewables in India's energy mix will be on unregulated power companies." 

"These companies are directly exposed to the market impact of environmental regulations—such as the clean energy tax—and do not receive the benefit of cost recovery from ratepayers," said Tyagi. 

Tyagi points out that the credit implications for individual Indian power generators will depend on their current and future generation mix, and how they adapt to the evolving policy environment. Read more

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