Ind-Ra updates thermal, wind outlook; FY25 infrastructure stable
POWER & RENEWABLE ENERGY

Ind-Ra updates thermal, wind outlook; FY25 infrastructure stable

India Ratings and Research (Ind-Ra) revised its outlook for the energy sector on Thursday, maintaining a stable forecast for the overall infrastructure sector for fiscal year 2025. The agency adjusted its perspective on thermal assets from positive to stable, attributing this change to an expected rise in electricity demand and healthier plant load factors (PLFs).

Ind-Ra indicated that the improvement in electricity demand and healthy plant load factors were anticipated to keep PLFs stable at 70% in FY25, underscoring a shift in the outlook for the thermal energy sector.

Simultaneously, Ind-Ra revised its outlook for wind assets from negative to stable, reflecting moderate improvements in generation and financial health. The stable outlook across the energy infrastructure was supported by enhanced economic activity and a projected increase in power demand by about 7% year-on-year in FY25.

In contrast, the agency maintained a positive outlook for the airports sector, expressing confidence that overall growth in passenger traffic was expected to be between 10%-12%, driven by improvements in regional connectivity and robust passenger growth at metro airports.

The agency reaffirmed a stable outlook for solar power projects, supported by significant capacity additions and continued stable operations. Approximately 15GW of solar capacity was added in FY24, following a consistent increase in previous years. However, challenges remained due to procurement risks and implementation risks related to new regulations effective April 2024.

Ind-Ra also maintained stable outlooks for other segments of the infrastructure sector, including transmission projects, toll roads, and sea ports, citing sustained revenue visibility and adequate liquidity conditions. The agency noted that there was no material impact of the Red Sea crisis on Indian trade as alternative routes were explored, supporting a steady outlook for the sea ports sector.

Additionally, the agency kept a stable outlook on electric buses, highlighting the sector's adequate delivery track record and ongoing sponsor support despite some operational delays.

India Ratings and Research (Ind-Ra) revised its outlook for the energy sector on Thursday, maintaining a stable forecast for the overall infrastructure sector for fiscal year 2025. The agency adjusted its perspective on thermal assets from positive to stable, attributing this change to an expected rise in electricity demand and healthier plant load factors (PLFs). Ind-Ra indicated that the improvement in electricity demand and healthy plant load factors were anticipated to keep PLFs stable at 70% in FY25, underscoring a shift in the outlook for the thermal energy sector. Simultaneously, Ind-Ra revised its outlook for wind assets from negative to stable, reflecting moderate improvements in generation and financial health. The stable outlook across the energy infrastructure was supported by enhanced economic activity and a projected increase in power demand by about 7% year-on-year in FY25. In contrast, the agency maintained a positive outlook for the airports sector, expressing confidence that overall growth in passenger traffic was expected to be between 10%-12%, driven by improvements in regional connectivity and robust passenger growth at metro airports. The agency reaffirmed a stable outlook for solar power projects, supported by significant capacity additions and continued stable operations. Approximately 15GW of solar capacity was added in FY24, following a consistent increase in previous years. However, challenges remained due to procurement risks and implementation risks related to new regulations effective April 2024. Ind-Ra also maintained stable outlooks for other segments of the infrastructure sector, including transmission projects, toll roads, and sea ports, citing sustained revenue visibility and adequate liquidity conditions. The agency noted that there was no material impact of the Red Sea crisis on Indian trade as alternative routes were explored, supporting a steady outlook for the sea ports sector. Additionally, the agency kept a stable outlook on electric buses, highlighting the sector's adequate delivery track record and ongoing sponsor support despite some operational delays.

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?