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Ind-Ra: Upsides of Grid Availability Improvement, Although Consistency in Implementation Crucial

Capital Market 

Grid availability improvement during the wind season in several states, particularly Tamil Nadu, is possibly an offshoot of concerted efforts by state power utilities and stakeholders says Ratings and Research (Ind-Ra). However, the government's continued thrust on forecasting and scheduling support is crucial for higher wind and solar power evacuation since a single wind cycle of grid availability is inadequate to conclude the programme's success.

Some states continue to adopt grid curtailment as the primary tool for reducing high cost power offtake.

Large developers such as Renew Power Ventures Private Limited, Energon Power Resources Private Limited and Mytrah Energy (India) Private Limited ('IND BBB'/Stable) predict and track wind movements and share these data points with the state utilities. As per the agency, deployment of better forecasting and scheduling methods also play a major role in the overall improvement in the scenario other than strengthening of transmission infrastructure by the utilities.

Project locations in Ind-Ra's portfolio displayed grid availability improvement of about 90bp yoy to 98.42% in 1QFY18.

Despite the final forecasting and scheduling guidelines, Karnataka lags behind in implementation as reflected by low grid availability in many projects. Gujarat's availability was strong with a grid availability of 99.94% in 1QFY18, while grid availability in Tamil Nadu surged over 700bp yoy in 1QFY18 to 98.86%.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 13 2017. 14:04 IST