But what they don’t realize, particularly newbies like Kiran Energy, is that the sector is in doldrums today not because the demand is not there, but because the procurer doesn’t have the revenues to pay for it.

Indian discoms (power distribution companies) typically lose a rupee on each unit of power sold in the retail market (due to leakages, losses and subsidies). This is on a purchase price of Rs. 3 / kwh. Solar contracts are closing around Rs. 8 – 9 / kwh.

Companies like Kiran should be more cautious, and so should their investors – contracts are fine, but when the bills are raised on the procurers and the money doesn’t come in on time, it won’t be as “nail-biting” or “exciting”.

This is not the right time in the Indian power sector to go for such aggressive growth plans.

Hybrid farms of wind + solar are also coming up in some places.