Coal to remain crucial, green capacity to grow in India: Moody's
Moody's Ratings said Wednesday.
The agency expects power demand here to rise by 5-6% annually during this period. The utilisation rate for coal-based power capacity is likely to be high at 65-70% despite additions.
Although Asia Pacific power markets are undergoing carbon transition, current thermal generation, including coal, oil and gas, remains the key supplier of power, and this trend will continue for at least the next three years to support increasing power demand in the region, it said.
India increased the share of renewable energy in its fuel mix to about 43% in FY24 through strong policy backing, it said.
Government support is crucial for India to meet its 2030 and 2070 climate targets. The Central Electricity Regulatory Commission's tariff regulations for 2024-29 ensure returns and cost pass-through mechanisms for distribution companies.
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