Article of the month
CRISIL Ratings Annual Infrastructure Summit: Revving roads and renewables
Executive summary
- Installed capacity of solar and wind to double to 218 GW in the next five fiscals from 108 GW as of March 2023
- Executable pipeline strong at ~50 GW, provides visibility for this fiscal and the next
- Pickup in auctions augurs well for capacity implementation over next fiscal onwards
- Rising renewable capacity to necessitate storage for grid balancing; 7-11 GW of storage capacity expected in the next five fiscals
- Sector to require investment of ~Rs 6.4 lakh crore over the next five years; capital availability to remain conducive
- Credit view on renewable developers stable:
- Ebitda to grow 20% driven by healthy capacitygrowth
- Operating performances to remain stable
- Debt to rise, but leverage seen steady at ~7 times with healthy DSCRs of 1.2-1.3 times
Analytica