Morgan Stanley Research has downgraded the Indian utilities industry, citing the threat from renewable power. These risks were not unknown, but the brokerage firm goes further and says the market is yet to fully price-in the impact of solar power, becoming the cheapest form of new electricity generation.
As demand remains subdued and renewable power achieves grid parity or becomes the cheapest source of new electricity, thermal power units will be unable to compete, making them redundant, or so the argument goes.