industry

Over 90 pc renewable energy projects received investment-grade ratings in 2020


More than 90 per cent of the solar and wind energy projects evaluated last year received investment-grade ratings of BBB and above, according to a study. This is due to the significantly improved financial viability of India‘s renewable energy projects over the last decade on account of favourable policy support from the central government, a statement said.

As recently as 2015, less than 50 per cent of the projects in the sector enjoyed such favourable ratings from credit rating agencies on their debt issuances, an independent study released by the CEEW Centre for Energy Finance said.

The report also highlighted that out of the 90 renewable energy projects evaluated by three credit rating agencies in 2020 and considered in the report, only six wind energy projects had below-investment-grade ratings.

Of the 44 solar projects evaluated, 26 enjoyed an ‘A’ rating while nine of them were rated as ‘AA’ – indicating an extremely low probability of default.

Further, five solar projects received BBB ratings on their debt issuances. Similarly, of the 46 wind energy projects evaluated, 30 projects received an ‘A’ rating, while another 10 projects were given ‘BBB’ rating by the credit rating firms.



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