Indian wind and solar projects see improved performance in FY24

Generation increased, despite falling short of analysts’ forecasts.

Indian wind and solar project-finance transactions exhibited improved performance for the financial year ending March 2024 (FY24), despite overall power generation falling slightly below one-year P90 forecasts, said Fitch Ratings.

Generation at the portfolio level grew by 4% in FY24 due to the commencement of new assets, whilst solar generation rose by 2% and aligned with the one-year P90 estimate.

Wind generation increased by 8%, an improvement from the 5% shortfall in FY23 despite remaining slightly below the forecast.

Meanwhile, cash collection for restricted groups shortened to about 100 days in FY24 from around 140 days in the previous year, supported by the government’s Late Payment Surcharge scheme.

Total collections for both wind and solar assets improved after the clearance of overdue payments from most state distribution companies.

“Sovereign-owned entities and commercial and industrial customers have largely paid on time over the last few years,” the report said.