Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Bank of America Posts Strong Q4 2024 Results, Shares Rise 
China's Refining Industry Faces Major Shakeup Amid Challenges 
UBS Projects Mixed Market Outlook for 2025 Amid Trump Policy Uncertainty 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge 
Urban studies: Doing research when every city is different 
US Gas Market Poised for Supercycle: Bernstein Analysts 
2025 Market Outlook: Key January Events to Watch 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
Lithium Market Poised for Recovery Amid Supply Cuts and Rising Demand 
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays 
Moody's Investors Service and its Indian affiliate, ICRA Limited, say that their stable outlook for the power sector in India (rated Baa3 positive by Moody's) over the next 12-18 months reflects sustained improvement in domestic coal availability, as well as the Indian government's policy initiatives, which will likely lead to improvements in the financial position of state-owned electricity distribution companies in the next two to three years.
"In fact, we changed the outlook for the Indian power sector to stable from negative, because the increased domestic production of coal will ease constraints on fuel supply," says Abhishek Tyagi, a Moody's Vice President and Senior Analyst.
Moody's also says that the Indian government's debt restructuring of the financially weak distribution utilities — under the Ujwal Discom Assurance Yojana (UDAY) implemented by 17 states so far — will likely improve the companies' financial capacity to make timely payments to power generators.
"These distribution utilities will also benefit from the lower cost of power purchases, due to improved domestic coal availability, the subdued tariff level of short-term traded power, and flexibility provided by the government to generating companies for the optimal utilization of coal," says Sabyasachi Majumdar, an ICRA Senior Vice President.
ICRA points out that an improvement in domestic coal availability has substantially mitigated coal supply risk and the risk of under-recovery in fuel costs — due to a reliance on costlier coal imports — for thermal independent power producers (IPPs).
ICRA also says that the improving financial profile of distribution utilities — which are key off-takers — will benefit IPPs through a reduction in the receivable cycle, and a modest improvement in the plant load factor over the next 18 months.
In addition, ICRA notes the uncertainty as to the timing of tariff compensations for affected thermal IPPs, given that the relevant authorities have yet to decide on the timing of such compensations for imported coal-based projects affected by changes in regulations in Indonesia (Baa3 stable).
Moody's says that renewable generation could act as a complementary source of power, rather than a competitor to thermal energy.
