Gamesa Wind Turbines is set to build 2,000 MW of wind power across the continent after receiving an order for $2 billion. The company is currently building manufacturing plants in Gujarat and Tamil Nadu to supply parts for wind turbines for the project, which is expected to be completed in the next five years. India is currently the fifth-largest wind energy producer in the world, having capacity to supply over 13,000 MW as of early 2010. Gamesa Chairman, Ramesh Kymal, said that the order was an indication that an increasing number of companies are considering wind energy a cost-effective and sustainable energy solution.
By Eric Yep and Santanu Choudhury
MUMBAI – Gamesa Wind Turbines Pvt., the Indian unit of Spain’s Gamesa Corporacion Tecnologica SA Tuesday received an order valued at $2 billion from the local unit of Caparo Energy Ltd. to build 2,000 megawatt of wind power projects in the South Asian country.
The first phase of the project of about 150 MW will be commissioned by 2012 and the final phase is expected to be completed by 2016, the two companies said.
Gamesa, one of the world’s largest wind turbine makers by capacity, will supply the wind turbines from its upcoming manufacturing facilities in India. The company, which competes with India’s Suzlon Energy Ltd., has a 500 MW capacity manufacturing unit in Chennai.
It is building new manufacturing facilities to make parts–including blades and towers–for its 2 MW turbines in the western state of Gujarat and the southern state of Tamil Nadu.
The facilities in Gujarat will be operational by September and the new ones in Tamil Nadu by the first quarter of 2012.
Global wind energy majors such as Gamesa and Suzlon have turned to fast-growing economies where rising energy requirement is fueling investments in renewables. In India, high fuel prices and the nuclear crisis in Japan earlier this year have reignited interest in renewable energy sources.
In the traditional markets of the U.S. and Western Europe, the recovery in demand for costlier renewable energy has been very slow after the economic downturn.
“This order underlines the acceptance of wind energy as a viable and profitable solution to meet the increasing appetite among corporates for reducing their carbon footprint and meeting energy needs through sustainable energy sources,” said Ramesh Kymal, chairman and managing director of Gamesa in India.
India had wind power capacity of more than 13,000 MW as of March 31, 2010, according to the country’s renewable energy ministry. India is the world’s fifth-largest wind energy producer.
The Global Wind Energy Council, an industry body, expects that by 2020 the South Asian country would have total wind power capacity of at least 46,000 MW and up to 65,000 MW.
“This is an important relationship with a strong and committed partner that will help us move into the next phase of our wind farm development and roll out in India,” said Ravi Kailas, chief executive at Caparo Energy India Ltd. “This agreement with Gamesa will be a significant step in meeting the long-term development goals of our company.”
Caparo Energy has its registered office in the Channel Islands and was listed on London’s junior Alternative Investment Market in October 2010. It focuses on developing wind power projects in India.