Suzlon May Set Up South African Wind Energy Plant

Suzlon is studying potential sites in the Eastern Cape and Western Cape, Silas Zimu, chief executive officer of Suzlon’s South African business, said. A team will evaluate the sites next week, he said, without disclosing the investment amount for the plant.

Suzlon plans to make towers and blades for wind turbines in South Africa. The manufacturing plant would need to produce about 400 megawatts worth of equipment a year to justify the investment.

South Africa is trying to reduce reliance on fossil fuels while expanding power capacity. Most of its electricity is generated from coal by state-owned Eskom Holdings SOC Ltd., which said in November the gap between electricity supply and demand is “tight.”

The country on Aug. 3 issued a request for proposals by companies interested in building renewable energy plants with a combined capacity of 3,725 megawatts by the end of 2016. Suzlon was included in the preferred bidders appointed in December, for its proposed 135-megawatt Cookhouse wind farm.