...Contracted Thermal Power Remains Stable: Fixed-price revenue contracts underpin the stable outlook for thermal power projects, typically incorporating strong credit quality counterparties and cost recovery for fuel and operating expenses. Fitch Ratings' thermal power portfolio is comprised of primarily natural gas-fired projects, which benefit from reduced emissions and more favorable pricing than coal-fired facilities. The Environmental Protection Agency's (EPA) Clean Power Plan alleviated the concern of plant-specific emissions regulations, and states have long lead times to comply. Renewables Overcoming Growing Pains: Noncompensated transmission curtailment and the risk of production shortfalls have placed some ratings under pressure, particularly in the wind sector. However, these are likely short-term issues, and most rated renewable energy projects benefit from long-term revenue contracts, supporting a stable outlook. As development incentives roll off and states achieve renewable...
