India to become a power surplus nation in the coming 5-7 years : Moody's

 With the rising shares of solar capacities, India could turn into a power surplus nation in the upcoming 5 to seven years, as predicted by Moody's Investors Service (MIS) says an ET report.

The expected development is likely to subject thermal power companies to challenges, with their capacity utilization undergoing a radical decline, as per the report.
Considering counter party risk issues as also the requirement for stable policy initiatives for cushioning long term investments, implementing renewable energy capacities would be a daunting task, as per the MIS statement.
The renewable energy capacities’ growth by 2022 is planned to augment around 175GW which is a major jump from the current 37GW, the report said.
The unregulated power companies would receive the most intense impact of a rising share of renewable in India's energy mix.
Being in a zone where they are bereft of any cost benefits from ratepayers, such companies have a greater exposure towards the market impact of clean energy tax and other such environmental regulations, as per Abhishek Tyagi, Moody's 
Vice President and Senior Analyst, stated the report.
Current and future generation mix as also the way of adapting to the evolving policy environment would determine credit implications for individual Indian power generators, Tyagi said. Business risk of regulated entities like NTPC Ltd, 
Tata Power etc is likely to amplify in the long term.
Contracted and availability based revenue would play out in the favor of such companies, whose whose power output is dominated by conventional sources, added the report.

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