India Wind Power Update

A quick update on the wind power scene in India.

New Installations

Suzlon Energy is setting up a 150 MW wind power project in Sangli district of Maharashtra for Reliance Energy, which is part of the Anil Dhirubhai Ambani Group. The project will be completed in two phases, and when complete will supply 380 million units per year, all of which REL will use for its distribution business in Bombay. In the next 2-3 years REL will set up 500 MW of wind power in various states, further boosting the domestic wind power scene. NTPC is also expected to give due importance to wind power in its, "plans to generate 1,000 megawatts of power through renewable energy sources by 2017".

New Manufacturing

In another move that is likely to benefit Indian wind power equipment manufacturers, Belgium-based Hansen Transmissions will set up a greenfield plant to manufacture gearboxes for wind turbines in the megawatt range, near Coimbatore. The plant will be operational in late 2008, and will reach full capacity of 1500 to 2000 gearboxes by 2010, at which time it will

Inorganic Growth

Meanwhile Suzlon's battle with Areva, the world's biggest manufacturer of nuclear power stations, to buy German wind-turbine maker REpower Systems goes on. Last month Suzlon topped the French Areva's offer of 105-euros per share with an offer of 126-euros per share. Areva responded yesterday with an offer of 140-euros per share. Areva already owns 30% of REpower, while Suzlon is partnering with Portuguese company Martifier, which owns 25% of REpower, and a consortium of banks led by ABM Amro, on the bid. In response to the new bid, Suzlon apparently is considering an offer of 160-euros per share.