RENEWABLE ENERGY

Sovereign rating downgrade poses risk for India’s green energy investors

The recent downgrading of India’s sovereign credit rating poses increased risk for attracting global investors in the country’s renewable energy sector.

Earlier this month, Moody’s cut the country’s sovereign credit rating by a notch to the lowest investment grade with negative outlook. The country’s credit rating was revised down to Baa3 from Baa2. In April, both Moody’s and Fitch had warned that deterioration in India’s fiscal outlook as a result of lower growth could exert pressure on its sovereign rating.

“Foreign investors would now be shy of investing in India’s promising renewable energy generation sector, especially solar power. In last fiscal, we pocketed some major overseas funding from Abu Dhabi Investment Authority (ADIA), Orix and Temasek”, said a solar power developer.

In 2019-20, Indian renewable energy generation sealed investment deals valued at $8.4 billion, a report from US-based think tank Institute for Energy Economics & Financial Analysis (IEEFA) said, quoting figures collated by JMK Research.

Source
business standard
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