Some concerning stuff on headwinds faced by the renewable industry in today’s Zerodha’s Daily Brief - Green Energy: Not As Simple As It Seems
Two significant headwinds
- ISTS Waiver going away on June 30, 2025. This will add Rs 0.4-1.8 kWh to tariffs according to Business Standard
- Demand-supply mismatch as SECI, NTPC, NHPC and SJVN unable to find offtakers for their solar projects. Supply is high because of govt mandated targets.
- DISCOMs are struggling to meet RPO targets - Renewable Purchase Obligations: Ambitious or Arbitrary - FSR GLOBAL which are essential for goal of 50GW new comissioned capacity annually.
Based on this, will not be adding to positions until more clarity is forthcoming
Disc - Invested