Solar sector caught in a haze as Adani storm set to hit funding, project plans

The Indian solar sector is bracing for impact after the US charges against the Adani group and NYSE-listed Azure Power last week.

- SHREYA JAI, SHINE JACOB & AMRITHA PILLAY

While a 12-gigawatt (GW) manufacturing-linked solar power project auctioned by the Solar Energy Corporation of India (SECI)—a wholly-owned subsidiary of the Ministry of New and Renewable Energy—is in the middle of the storm involving the Adani group and several states, the solar-renewable industry itself fears a severe backlash.

An executive with an energy firm said: "There's a sense of shock and disbelief." The executive added that Donald Trump's election as the next US president, in addition to these developments in India, could impact the pace of renewables in India and likely the financing cost as well.

"It's incredibly harmful to the sector and India," said a senior executive with a legal firm, consulting on energy sector deals and investments. The executive said the recent developments had resulted in loads of discussions amongst different classes of investors, though no definitive decisions had been taken yet.