Once a premium destination for overseas investors, Turkey’s power sector has recently been struggling with the impact of lower-than-expected growth rates, partial market liberalisation and fixed, long-term natural gas contracts. Power generation firms face further stress as the economic impact of the pandemic bites. Efforts to arrange a new debt restructuring deal have been delayed by the virus and wider economic woes, casting uncertainty over future demand. However, the sector retains some high-grade assets, however, which may attract future investor interest.
India has been extremely successful in attracting investment into its domestic renewable energy sector, with efforts underpinned by strong government support. That said, concerns over tariff feasibility, grid bottlenecks and the leadership’s lingering commitment to coal-fired power are underappreciated risks that have the potential to dampen investor sentiment and temper the country’s renewable expansion.