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Suzlon sees a down year for Wind

Suzlon Says European Companies Delay Turbine Orders

May 12 (Bloomberg) — Suzlon Energy Ltd., India’s largest wind-turbine maker, said companies in Europe are postponing orders as the debt crisis makes it difficult to raise funds for renewable-energy projects.

“A lot of projects are being deferred,” Chairman Tulsi Tanti said in an interview recorded with Bloomberg TV in Brussels yesterday. “Small and medium customers are heavily affected by the financial crisis,” he said without naming companies. “2010 will be a moderate year” for orders.

The European Union’s $1 trillion bail-out plan is yet to revive a credit-market rally as investors doubt the measures will bolster confidence in government finances. Companies are delaying orders until they have obtained funding, cutting Suzlon’s delivery to six months from 18 months, Tanti, 52, said.

Suzlon sees down year for wind energy industry

Suzlon Wind Energy Corp, the world’s third-largest maker of wind turbines, is facing a disappointing year in 2010, primarily due to reluctance by developers to move on new wind projects amid diminished demand.

…Business was sluggish in the first quarter and should follow that trend throughout 2010, Suzlon North American CEO Andris Cukurs said at the Reuters Manufacturing and Transportation Summit in Chicago.

…”It is going to be a down year from last year,” said Cukurs. “Developers are reluctant to convert pipeline into real projects.”

..Cukurs emphasized the industry needs a national renewable energy standard (RES) to require power producers to source part of their electricity from renewable sources like wind, as well as a federal push supporting the development of costly new transmission lines for wind-powered energy.

It is interesting to note that similar to what Cukurs has proposed, the  Indian government under  The National Tariff Policy mandates each SERC to specify a Renewable energy Purchase Obligation (RPO) by distribution licensees in a time-bound manner. Under this around eleven state regulators have under the National Tariff Policy 2006 passed orders for a minimum offtake of renewable power by distribution licensees. The RPO has got a further boost with JNNSM proposing  to introduce Renewable Purchase Obligation (RPO) to promote the growth of this sector. The solar power purchase obligation for States would start with 0.25% in Phase I  and go up to 3% by 2022.

With the installation  in India being range bound  between 1470-1750MW  a year over the last five years and increasing competition on the home turf with newer players entering the India market, Suzlon faces considerable challenge in maintaining the its market dominant position in India and given the challenges in Europe and America that they have highlighted 2010 seems to be a challenging year for the Indian market leader globally.

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