+
Thermal plant load factors will approach 70% in FY25; Ind-Ra reports
POWER & RENEWABLE ENERGY

Thermal plant load factors will approach 70% in FY25; Ind-Ra reports

Ind-Ra expects merchant market prices to remain elevated in FY25, driven by sustained high demand and sluggish thermal capacity expansions. However, it foresees an acceleration in thermal capacity additions over FY25-26, with annual commissioning expected to range between 6-8GW. The new draft tariff norms by the Central Electricity Regulatory Commission for FY25-FY29 aim to maintain stability; ensuring regulated returns for existing power plants.

Additionally, the agency predicts continued renewable capacity additions at a pace of 15-18GW annually over FY25-FY26, supported by lower equipment costs, favorable policies, and liquidity availability. However, the pace of execution will hinge on regulatory approaches towards import duties, domestic manufacturing support, and equipment sourcing.

Ind-Ra highlights pumped storage hydro power projects as a viable solution, especially given the economic challenges of battery storage. The agency also notes improvements in the financial position of generating companies, driven by better liquidity in distribution companies and improvements in payment behavior.

Moreover, there's observed a shift in the business model of large corporates towards non-regulated activities and increased renewable capacity. Ind-Ra remains optimistic about the stability of credit metrics for rated sector entities in FY25, supported by additional earnings from new capacities and deleveraging, despite ongoing capital expenditure plans. The agency maintains a stable rating outlook for FY25, confirming sufficient liquidity buffers for most rated issuers in the 'A' and above categories.

(Source: ET Energy)

Ind-Ra expects merchant market prices to remain elevated in FY25, driven by sustained high demand and sluggish thermal capacity expansions. However, it foresees an acceleration in thermal capacity additions over FY25-26, with annual commissioning expected to range between 6-8GW. The new draft tariff norms by the Central Electricity Regulatory Commission for FY25-FY29 aim to maintain stability; ensuring regulated returns for existing power plants. Additionally, the agency predicts continued renewable capacity additions at a pace of 15-18GW annually over FY25-FY26, supported by lower equipment costs, favorable policies, and liquidity availability. However, the pace of execution will hinge on regulatory approaches towards import duties, domestic manufacturing support, and equipment sourcing. Ind-Ra highlights pumped storage hydro power projects as a viable solution, especially given the economic challenges of battery storage. The agency also notes improvements in the financial position of generating companies, driven by better liquidity in distribution companies and improvements in payment behavior. Moreover, there's observed a shift in the business model of large corporates towards non-regulated activities and increased renewable capacity. Ind-Ra remains optimistic about the stability of credit metrics for rated sector entities in FY25, supported by additional earnings from new capacities and deleveraging, despite ongoing capital expenditure plans. The agency maintains a stable rating outlook for FY25, confirming sufficient liquidity buffers for most rated issuers in the 'A' and above categories. (Source: ET Energy)

Next Story
Real Estate

MoHUA Sanctions 1.47 Lakh Additional Houses Under PMAY-U 2.0

In a major push towards the Government’s Housing for All mission, the Ministry of Housing and Urban Affairs (MoHUA) has approved 1,46,582 additional pucca houses under Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) for 14 States/UTs, bringing total sanctions under the revamped scheme to 8.56 lakh.The decision came during the fourth meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by Srinivas Katikithala, Secretary, MoHUA, at the Ministry’s Kasturba Gandhi Marg office. Senior officials, State Principal Secretaries, and PMAY-U Mission Directors participated ..

Next Story
Real Estate

Piyush Goyal Inaugurates Expanded ISA Building at Intellectual Property Office

Union Minister of Commerce and Industry, Piyush Goyal, today inaugurated the newly expanded International Searching Authority (ISA) building at the Intellectual Property Office (IPO) in Dwarka, New Delhi, marking a major step forward in India’s intellectual property ecosystem.Addressing the gathering, Goyal highlighted that innovation has been central to India’s heritage for centuries, citing the engineering brilliance of the Konark Temple as a historic example. He emphasised that innovation is not just intellectual property but a symbol of sovereignty, and a key driver in India’s journe..

Next Story
Real Estate

SIEGER Boosts Automation in Mumbai Realty

SIEGER, a leading automation solutions provider, is expanding its advanced manufacturing capabilities to meet the surging demand for precision, high-speed automation in Mumbai’s rapidly growing real estate sector.Operating from a 21,000 m² advanced production hub in Coimbatore—part of a 40,000 m² integrated campus—SIEGER offers complete solutions from design and prototyping to manufacturing and deployment. The fully digitalised facility features CNC machining, QR-coded component tracking, conveyorized powder coating, and a Government of India–certified R&D centre, ensuring unmatc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?