WIND MARKET

ANALYSIS
A summary of industry performance
03/10/2017
 TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................................................. 3
TOP 10 Wind Companies performance review .............................................................................................. 4
1. Inox Wind Limited ................................................................................................................................................................................ 4
.................................................................................................................................................................................................................................. 5
2. Suzlon Energy Limited ........................................................................................................................................................................ 5
3. Vestas ......................................................................................................................................................................................................... 5
5. Siemens Gamesa .................................................................................................................................................................................... 6
TENDER IN Wind Energy Sector ........................................................................................................................... 7
New opportunties for Rittal ................................................................................................................................... 9
Bibliography ............................................................................................................................................................... 9

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 EXECUTIVE SUMMARY
Indian Wind industry had seen a record-breaking installation in the FY 16-17, thus India becoming the
4th largest Wind Energy market in the world. It was a historic year as wind energy has surpassed all its
previous records with ~3,300 MW installations. India’s wind energy sector thus witnessed an unprec-
edented acceleration last year and is thus expected to grow by 30% annually. All of this is propelled by
technology and conducive policy environment.

The sector has also recently shifted from a Feed in Tariff(FiT) route to the competitive bidding regime.
The industry reluctantly welcomed the step, and has moved towards healthy competitive participation
in the bid.

Along with this the new financial year showed a slowdown with prominent reasons of low tariff rate,
shift from FiT regime to Auction Tendering process. Many major players like Suzlon and Inox Wind are
facing trouble to match up to existing up taken projects in terms of execution of the ongoing projects.

With the major slow-down in the sector, big companies like Suzlon Energy are taking measures like
restructuring and downsizing so as to accommodate the low demand. These steps are a clear effect of
the underutilized manufacturing capacity.

Whereas Vestas, is entering Indian market by taking up projects of 100 MW(Customer not disclosed),
70 MW wind installations in Karnataka.

This slowdown in Wind energy sectors can be seen due to low tariff rates in tendering i.e. a cut-throat
cost-competition between leading players to get maximum energy allocation. Eventually meeting the
expectation is still a doubt.

With a slow-down seen with wind energy sector possibly because many companies awarded with ten-
ders are not able to fulfill the PPA, and thus leading to cancellation of these tenders. These expected
orders are going on hold.

This slow-down is expected to continue for current financial year, but is seen positively to be revived
in FY18 with expectations of center allocating tenders by year end.

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 TOP 10 WIND COMPANIES PERFORMANCE
REVIEW

1. Inox Wind Limited

About Inox Wind:

Inox Wind Limited is one of the India’s leading wind power solution provider. A fully integrated
player in the wind energy market with state of art manufacturing plants near Ahmedabad (Guj-
rat) for blades & tubular towers and at Una (Himachal Pradesh) for hubs & nacelles. There is a
newly integrated facility in Barwani (Madhya Pradesh).

Key Highlights:
 Inox wind signs deals for SECI-1, 100MW capacity with Adani Green Energy at Kutch –
Gujrat (30th August,2017)
o Scope of work includes to supply, erect and commission 50 units of its latest 2MW
turbines of 120m Hub height & 113m Rotor Diameter
o PPA signed for fixed tariff of Rs.3.46/Unit for 25 years with PTC India
o Project is won in a round 1 of SECI bid won for wind power projects on Central
grid
o This site is said to be the largest wind farms in India post execution of capacities
expected to be won in future rounds of SECI and state auctions
o The project will be executed on turnkey basis and is said to be completed by March
2018
 They also plan to set up Wind Farm of 250 MW in Kutch, Gujrat in next 12 months
 Their key strategy is to bid aggressively in all SECI and state auctions
 In total INOX till now has won auctions of about 550 MW (300 MW in SECI-I)
 Key strategy: To bid for big projects, develop them and sell them to Power Producers
 Targets to reach wind capacity of about 60 GW by 2022
 Stopped all manufacturing after 700 megawatts of orders won under the previous feed-
in-tariff regime became a "piece of paper”
 Company has manufacturing capacity of 1600 MW, but has orders of only 300 MW to be
executed from October

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 2. Suzlon Energy Limited
About Suzlon:

Suzlon is one of the leading renewable energy solutions providers in the world. They have installed
around 17 GW of wind energy capacity globally. With a support network of over 8,500 employees of
diverse nationalities, we house one of the largest in-house Research and Development (R&D) set-up
with facilities in Germany, the Netherlands, Denmark and India.

Suzlon is a market leader in India with 100+ wind farms with an installed capacity of over 11 GW
spread across all wind rich states. Suzlon is credited with developing few of Asia's largest operational
onshore wind farms in Gujarat, Rajasthan, Maharashtra, and Tamil Nadu. The Kutch (Gujarat) and
Jaisalmer (Rajasthan) Wind farm of Suzlon till date have a cumulative installation of approximately
1,200 MW each.

Key Highlights

 Suzlon Energy Ltd.’s revenue fell 46 percent in the quarter ended June

 Suzlon Energy executive has hinted at “Manpower rationalization”

Ref: https://www.bloombergquint.com/business/2017/09/14/india-s-wind-turbine-makers-mull-

cuts-as-auction-pace-lags

3. Vestas

About Vestas

Vestas is the energy industry’s global partner on sustainable energy solutions. They design, manufac-
ture, install, and service wind turbines across the globe, and with 85 GW of wind turbines in 75 coun-
tries and have installed more wind power than anyone else. Through their industry-leading smart data
capabilities and unparalleled more than 71 GW of wind turbines are under service.

Vestas key highlights

 Vestas awarded 40 MW order in India

o Atria Brindavan Power Private Limited places 40 MW firm and unconditional order for
the first phase of the Basavane Bagewadi Wind Farm in the Bijapur district of Karnataka
state. The order includes supply and installation of 18 V110-2.2 MW turbines

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 4. ReGen Powertech

About ReGen:

ReGen is the fastest growing Wind Energy Company in India in just 7 years of Commissioning its state
of the art manufacturing facility at Tada, Andhra Pradesh. ReGen’s superior gearless wind turbines
have been designed by Vensys AG with a minimalistic philosophy in mind.

ReGen Powertech (ReGen) is one among the largest manufacturer of multi megawatt direct drive (gear-
less) WECs with permanent magnet technology in Indian market and provides full turnkey installations
for wind power projects.

Key Highlights:

• In month of August, it shuttered a factory in the northwest city of Udaipur

•Currently operating from 1GW –factory from the state Andhra Pradesh
•Reduced staff strength from 1700 to 1300 and are still at it

5. Siemens Gamesa

Key Highlights:

 Siemens Gamesa wins first order for a hybrid Wind-Solar project in India
o Siemens Gamesa has been mandated to develop India’s first large commercial hybrid wind-
solar project, where a 28.8-MW solar facility will be connected to an existing 50-MW wind
farm
o Also including the supply of photovoltaic inverters made by Gamesa Electric
o Scheduled to be operational by the end of 2017
 Revenues down 7% y-o-y 1 largely on the back of the Indian market temporary downturn, with
underlying pre-PPA operating profitability at 7.8%2


Other OEM’s In India:

 Wind World India Limited

 RRB Energy
 Orient Green
 Enercon India Pvt Ltd

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 TENDER IN WIND ENERGY SECTOR

The Solar Energy Corporation of India (SECI) has announced that it will auction 4,000 megawatts of

wind energy capacity this financial year, i.e. by March 2018.

India 1st Wind Tender by "SECI”

•Oversubscribed despite off-take uncertainties (3 times oversubscribed)

•First Wind Auction conducted in February 2017 for the Capacity of 1050 MW

•Record low power tariff of Rs.3.46

•Awardees: Mytrah , Sembcrop , Inox-Wind, Ostro Engg (250 MW each)

SECI Second Wind Tender:

Tamil Nadu Tender- 1000 MW of Wind energy capacity

Project developers have placed bids to set up a total of 2,898 megawatts against an offered capacity of

1,000 megawatts

•Tariffs fell to a new low of INR 2.64, with a drop of 24% in tariff rates in just 7 months

•Winning Bidders:

•ReNew (INR 2.64, 250 MW)

•Orange Power (INR 2.64, 200 MW)

•Inox Wind (INR 2.65, 250 MW)

•Sembcorp Green Infra (INR 2.65, 250 MW)

•Adani (INR 2.64, 50 MW)

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 NEW OPPORTUNTIES FOR RITTAL
 Brazilian company WEG to set up wind turbine manufacturing facility in India
 Acciona Windpower is part of the Nordex Group. In 2017 they launched their new 3 MW turbine
viz; AW125/3000 wind turbines
 Senvion has acquired the Indian assets of German wind-turbine manufacturer Kenersys, secur-
ing itself an established manufacturing base in India

BIBLIOGRAPHY
https://www.inoxwind.com/inox-wind-signs-deal-for-seci-1-100-mw-capacity-with-adani-green-energy/ (1)

http://voiceofrenewables.com/wind/senvion-presents-its-largest-2-mw-turbine-series-for-india/(2)

http://voiceofrenewables.com/wind/siemens-gamesa-wins-first-order-for-a-hybrid-wind-solar-project-in-india/

https://www.bloombergquint.com/business/2017/09/14/india-s-wind-turbine-makers-mull-cuts-as-auction-pace-lags

http://www.thehindubusinessline.com/specials/clean-tech/wind-energy-wind-turbine-windergy-2017-india-renewable-energy/arti-
cle9797357.ece

https://ultra.news/s-k/33680/inox-wind-eyes-large-share-upcoming-wind-power-projects

http://economictimes.indiatimes.com/industry/energy/power/inox-wind-on-road-to-insolvency-after-nclt-clears-process/arti-
cleshow/59602129.cms

http://economictimes.indiatimes.com/industry/energy/power/renew-power-orange-sironj-lowest-bidders-at-secis-1000mw-auction/arti-
cleshow/60962340.cms