Ind-Ra revises prospects for thermal and wind power, maintains stable infrastructure forecast for FY25, ET EnergyWorld

New Delhi: India Ratings and Research (Ind-Ra) on Thursday revised its outlook for the power sector, maintaining a stable outlook for the entire infrastructure sector for financial year 2025. The agency revised the outlook for thermal assets from positive to stable, attributing the revision to the expected growth in electricity demand and healthier power plant load factors (PLF). “Improving electricity demand and healthy power plant load factors are expected to keep the PLF stable at 70% in FY25,” the agency noted, highlighting the change in the outlook for the thermal power sector.

At the same time, Ind-Ra revised its outlook for wind assets from negative to stable, reflecting moderate improvement in the generation and financial situation. The stable energy infrastructure outlook is supported by increased economic activity and projected energy demand growth of approximately 7% year-on-year in fiscal year 2025.

The Agency continues to express confidence in the airport sector with a positive outlook. “Overall passenger traffic growth is expected to be 10% to 12% led by improved regional connectivity and significant increase in passenger numbers at metro airports,” Ind-Ra said.

The agency confirmed stable prospects for solar energy projects, supported by a significant increase in production capacity and continued stable operations. After steady growth in previous years, approximately 15 GW of solar capacity was added in FY24. Challenges remain due to procurement and implementation risks associated with the new regulations in force from April 2024.

Ind-Ra also maintained a stable outlook for other segments of the infrastructure sector, including transmission projects, toll roads and seaports, citing continued revenue visibility and adequate liquidity conditions. “The Red Sea crisis had no significant impact on Indian trade as alternative routes were explored,” the agency said, confirming a stable outlook for the seaport sector.

Additionally, the agency maintained a stable outlook for electric buses, highlighting the industry’s adequate delivery performance and continued sponsor support despite some operational delays.