India Ratings and Research has maintained a “stable” outlook for the Indian solar sector in fiscal 2023-24, while maintaining a “negative” outlook on wind power projects. It has revised the rating outlook for thermal assets to “positive” from “stable.”

India added 14 GW of solar and 1.8 GW of wind power generation capacity in 2022, according to analysts. However, wind projects continue to be plagued by generation variability.

“Elimination of reverse auction is likely to allow developers bid with a better risk-return profile and improve the capacity addition in the medium term,” said the analysts.

India Ratings and Research revised its outlook for thermal power projects to “positive,” based on an improvement in electricity demand that could increase plant load factor to above 65%, better visibility of coal-cost pass-through, and adequate liquidity.