- Jan 18, 2019 8:14 am GMT
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"Solar projects are demonstrating lower operational risk, better generation performance and lower volatility," according to Fitch Ratings Director Andrew Joynt. "Solar projects also tend to meet or exceed initial volume estimates while wind projects more often underperform against expectations."
Fitch upgraded 19 percent of the 16 solar projects it has rated to date as compared to just one percent of 41 wind projects. Furthermore, Fitch downgraded 12 percent of wind projects all due to underperformance compared with expectations.
"Volatility of revenue counterparties has driven much of the solar project downgrade activity in recent years, most recently with Pacific Gas & Electric Co.'s (PG&E) plans to file for Chapter 11 bankruptcy and subsequent ripple effect to project financings, such as Genesis Solar, LLC and Topaz Solar Farms, LLC, dependent on PG&E for revenue" Fitch explains in its first-ever global renewable energy performance review.