Ind-Ra has maintained a “stable” outlook for solar projects and a “negative” outlook on wind projects in fiscal 2024, from April 1, 2023, to March 31, 2024.

It said that solar projects maintain stability, with adequate debt coverage and improved liquidity, while falling module prices benefit under-construction projects. However, it added that timely project completion is critical due to the slowdown in yearly capacity additions in the first half of fiscal 2024.

Ind-Ra said India installed 5 GW of solar capacity and 1.6 GW of wind in the first half of fiscal 2024, from 6.8 GW of solar and 1.3 GW of wind in the first half of fiscal 2023. Capacity additions for all of fiscal 2023 hit 12.8 GW solar and 2.3 GW wind.

Wind projects continue to be marred by generation variability, said Ind-Ra. It expects wind generation in fiscal 2024 to be similar to the preceding year. The elimination of reverse auctions will probably allow developers to bid with better risk-return profiles, supporting capacity additions over the medium term, according to Ind-Ra.