Suzlon wins a 202 MW wind power order from Techno Electric Group

This is the single largest deal by an Independent Power Producer (IPP) in India for wind power investment. This order will take Techno Electric Group’s total wind power portfolio to over 297 MW.

Suzlon Energy Limited (SEL), the world’s third leading and India’s largest wind turbines manufacturer, announced the signing of a new order with Kolkata based Techno Electric Group, for over 202.2 (megawatt) MW wind farm projects for approximately INR 1149 crore (~USD 251 million).

Techno Electric combines heavy engineering and light construction capabilities across India’s power generation, transmission and distribution segments. With a clear focus on green energy, the Group has emerged as an independent power producer (IPP) with operational wind farm projects of more than 95 MW, set-up and operated by Suzlon, in the states of Tamil Nadu and Karnataka.

The Group plans to scale up its wind power assets further and has signed a business agreement with Suzlon, as its preferred supplier, for development of 500 MW of new capacity. The 202 MW wind energy order is part of this agreement and is the single largest deal signed by an IPP customer in the wind power sector of India.

The order comprises of 24 units of Suzlon’s S88 2.1 MW wind turbines, 34 units of Suzlon’s S82 1.5 MW WTGs and 48 units of Suzlon’s new S95 2.1 MW wind turbines.

The wind farm first phase of 101.4 MW will be commissioned in the state of Tamil Nadu by June 2011. The second phase of 100.8 MW will be commissioned by December 2011.

The wind power sector in India has matured over two decades, with a cumulative installed capacity of over 12,000 MW. The total estimated onshore wind power potential in India, as per Ministry of New and Renewable Energy (MNRE) data is over 48,000 MW.

The sector is poised for accelerated growth as a result of strong policy support and positive investment  outlook by the customers. Suzlon is the market leader in wind power for 12 consecutive years, with a market share of approximately 50 per cent.

Speaking on the project, Mr. P. P. Gupta, Managing Director, Techno Electric and Engineering Company Limited said, “We clearly see a great future and substantial growth opportunities for IPPs in India’s wind energy market. We are optimistic about the value creation using a combination of various revenue options, such as the attractive feedin tariff, Generation Based Incentive, Renewable Energy Certificates and trading power under the open access system.

“We are very satisfied with the performance of our existing 95.45 MW of wind energy projects set-up and operated by Suzlon, and decided to further strengthen our association with this new order. We did a diligent evaluation of various options on the basis of life cycle value contribution to ably support our ambitious 500 MW development plan. Suzlon was the obvious choice with its proven performance, reliable technology, established end-to-end solution capabilities and great customer service. We count on the expertise of India’s leading wind power player in our endeavor to become a major wind power IPP in India.”

Mr. Tulsi R. Tanti, Chairman and Managing Director, Suzlon Energy said, “The Techno Electric Group are revered customers and we have very successful projects with them. We are honored to have the opportunity to partner with them again.

“This order stands testament to a new phase of IPP investments in wind power. The IPP segment has the capability to augment bigger wind power capacities quickly. We are fully geared to meet this segment’s specific requirements by adapting to the fast-changing market dynamics, in terms of customer needs, business model, product technology and policy framework.

“We are committed to build the backbone of the nation with installation of large scale wind power projects which shall contribute towards energy security and sustainable economic development of India.”

Suzlon, the leader in the Indian wind energy stage, has maintained market leadership by capturing ~50 per cent market share for 12 consecutive years. Suzlon offers the conceptto- commissioning business model to wind energy investors in India – providing a comprehensive suite of services from turbine supply, to EPC, lifetime operations and maintenance and other value added services covering the entire value chain. The success of the model is seen in Suzlon’s rapid growth in India – with over 40 sites across eight states, and an installed base of more than 5,000 MW and a customer portfolio that captures the leaders of the Indian Industry.

Suzlon Energy Limited ranked as the world’s third leading wind turbine supplier in terms of market share in 2009. Suzlon has its corporate office in Pune, India. The company’s global spread reflects in its projects and markets portfolio -extending across Asia, Australia, Europe and North and South America. Suzlon is a highly vertically integrated wind turbine manufacturer with manufacturing capability along the full value chain – from components to complete wind turbine systems. 

Suzlon and REpower, if taken together, stand as the world’s third leading wind turbines supplier group in terms of market share. Market share of 9.8 per cent is derived from BTM Consult ApS World Market Update 2009, ranking Suzlon with 6.4 per cent of global market share and REpower with 3.4 per cent of global market share.