The Hindu Business Line

CARE Rat­ings re­vises out­look of 11 so­lar firms to neg­a­tive

- Business · Renewable Energy · Solar Power · Environmental Economics

Rat­ing agency CARE Rat­ings has re­vised its out­look to neg­a­tive on the bor­row­ing pro­grammes of 11 so­lar power pro­duc­ers due to de­layed pay­ment to them by dis­tri­bu­tion com­pa­nies in Te­lan­gana for elec­tric­ity pur­chased.

In a re­lease on Mon­day, CARE Rat­ings said the 11 com­pa­nies had a com­bined in­stalled ca­pac­ity of 574 MW.

It has also down­graded the rat­ings on bor­row­ing pro­grammes of two so­lar power gen­er­a­tors which have in­stalled ca­pac­ity of 80 MW and sell elec­tric­ity to Dis­coms in the State.

“The re­vi­sion in out­look and rat­ings re­flects in­creased counter-party risk and weak­en­ing in the liq­uid­ity po­si­tion of th­ese gen­er­a­tors ow­ing to sig­nif­i­cant de­lays in the re­ceipt of pay­ments from the off-tak­er­sTe­lan­gana dis­coms,” it said. “Off-taker risk, stem­ming from de­lays in pay­ments by Dis­coms has been a ma­jor rat­ing weak­ness for so­lar power gen­er­a­tors ex­posed to Te­lan­gana. So­lar power gen­er­a­tors in the Te­lan­gana have been fac­ing de­lays in pay­ments by up to eleven months,” CARE Rat­ings added.

As on June 30, 2019, to­tal in­stalled ca­pac­ity of so­lar power in Te­lan­gana stood at 3,621 MW and Care Rat­ings has rated projects/SPVs hav­ing ag­gre­gate ex­po­sure to­wards Te­lan­gana dis­coms of ap­prox­i­mately 900 MW.

All th­ese en­ti­ties have longterm power pur­chase agree­ments with Te­lan­gana Dis­coms for 25 years tenor at tar­iffs in the range ₹5.26 to ₹6.889 per unit.

Fur­ther­more, there is no re­vi­sion in tar­iffs for FY2019-20, the agency said.

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