<p>Bengaluru: As India targets 60% non-fossil energy capacity mix by 2035 under the revised Nationally Determined Contributions (NDC), a new report by the Institute for Energy Economics and Financial Analysis (IEEFA) notes that the renewable sector's ability to raise long-tenor, amortising debt will ultimately determine whether the transition succeeds.</p>.<p>The researchers assessed the credit risk profiles of eight key power generators in the country, from Adani Green Energy Limited to ReNew Power and the state-owned National Thermal Power Corporation (NTPC) Limited.</p>.<p>The report, titled 'Financing the Energy Transition: A Credit Perspective on India's Power Sector', is co-authored by Kevin Leung (Sustainable Finance Analyst, Debt Markets, Europe), Saurabh Trivedi (Lead Specialist, Sustainable Finance & Carbon Markets, South Asia) and Soni Tiwari (Energy Finance Analyst, India).</p>.India's 60% target of non-fossil fuel energy in overall mix by 2035 depends on debt financing.<p>The assessment showed that renewable assets structurally outperform thermal on profitability. However, the expansion is heavily debt financed.</p>.<p>"Seven of the eight companies analysed generated negative free cash flow in FY2025, reflecting capital-intensive buildouts that are funded predominantly through debt," it said, noting that while growth will continue due to the announcement of capex, the question remains whether the assets can support sustainable debt service.</p>.<p>It emphasised the 'untapped potential' in the bond markets by pointing to the fact that the eight utilities analysed raise approximately 80% of their debt through loans. Further, it said the NTPC was central to unlocking transition finance.</p>
<p>Bengaluru: As India targets 60% non-fossil energy capacity mix by 2035 under the revised Nationally Determined Contributions (NDC), a new report by the Institute for Energy Economics and Financial Analysis (IEEFA) notes that the renewable sector's ability to raise long-tenor, amortising debt will ultimately determine whether the transition succeeds.</p>.<p>The researchers assessed the credit risk profiles of eight key power generators in the country, from Adani Green Energy Limited to ReNew Power and the state-owned National Thermal Power Corporation (NTPC) Limited.</p>.<p>The report, titled 'Financing the Energy Transition: A Credit Perspective on India's Power Sector', is co-authored by Kevin Leung (Sustainable Finance Analyst, Debt Markets, Europe), Saurabh Trivedi (Lead Specialist, Sustainable Finance & Carbon Markets, South Asia) and Soni Tiwari (Energy Finance Analyst, India).</p>.India's 60% target of non-fossil fuel energy in overall mix by 2035 depends on debt financing.<p>The assessment showed that renewable assets structurally outperform thermal on profitability. However, the expansion is heavily debt financed.</p>.<p>"Seven of the eight companies analysed generated negative free cash flow in FY2025, reflecting capital-intensive buildouts that are funded predominantly through debt," it said, noting that while growth will continue due to the announcement of capex, the question remains whether the assets can support sustainable debt service.</p>.<p>It emphasised the 'untapped potential' in the bond markets by pointing to the fact that the eight utilities analysed raise approximately 80% of their debt through loans. Further, it said the NTPC was central to unlocking transition finance.</p>
