According to reports, India needs uniform regulations in global wind energy market says Paulo Fernando Soares, Global CEO, Kenersys.
Kenersys is a relatively new entrant in the global wind energy market, with a target of installing 150 mega watt (mw) wind turbine by December. These plans are noteworthy, given that its installed base was 30 mw last year, its first full year of operations.
Despite its small installed base and lack of size, the Germany-headquartered Kenersys Group is eyeing growth opportunities in its largest market, India, besides the US and Brazil. “Despite the economic slowdown, the US remains the largest and fiercest market for wind energy,” says Paulo Fernando Soares, Global CEO of Kenersys group.
According to him, the US is the fiercest as it has all the big players and also equipment makers. With their large manufacturing set ups, these manufacturers can finance their customers or bring down prices. “In the US, it is possible to put up large wind farms, the state governments have all mandated renewable energy installations and it is the largest free market in the world.
But we don’t work in China nor have any plans of going there. In a market where 20,000 mw wind turbines were installed, international companies sold only 2,000 mw. In China, government companies sell to government companies and the market for international companies is very small.
Also, business is not fair and while turbine costs may be lower there, they are cheaper only on the surface. Other factors like availability, quality, performance are all poorer,” he says.
Kenersys, a designer and assembler of turbines for the wind energy sector, is a joint venture (75:25) between the Kalyani group and the US-based First Reserve Corporation, a private equity (PE) fund focused on the energy sector.
The company expects to set up a manufacturing base in the US in the next three years, after it installs a significant number of sites to showcase its capabilities. On top of its agenda, though, is the Brazilian market, where it expects to set up its own assembly operations before the end of the year.
“We will set up an assembly operation in Brazil in the next two-three months, and not because I am a Brazilian! We need to be in Brazil and the US in the next three years,” says Soares. It is no accident that Kenersys’ majority owner, the Kalyanipromoted Bharat Forge is also set on its next round of aggressive expansion in that region, specifically Brazil.
India accounts for two-thirds of Kenersys’ global installed base of 74 mw installations. The company has bought land in Gujarat, near Rajkot, and Tamil Nadu and is looking at the “challenging” conditions in Rajasthan where land is available, but the climate is hot and dusty.