Hamburg, 21 July 2020 – Energy demand in India is expected to double in the next decade, with firm Indian government goals to achieve a 60GW operational wind power capacity by 2022 and 140GW in 2030. During 2019 India remained Asia’s second largest wind market with 2.4GW of newly added wind capacity, and it accounted for 3.9% of all new onshore installations, good for a 4th global ranking position.
On 4 June the consultancy Wood Mackenzie predicted 2.5GW of new wind installations in CY 2020, down 1GW from earlier predictions. However, according Mercom India statistics for Q1-2020 saw only 189MW coming online, with Tamil Nadu state leading with a 25% share. Experts are not very optimistic about the rest of 2020 because as a result of the COVID-19 lockdown, at least two good months normally key to wind turbine installation were lost. The upcoming monsoon period is traditionally not good for project realisation either.
Positive Indian insider sources say that the export of main components like gearboxes from the comprehensive supply chain to main wind markets, especially in the US, is booming. The trade challenges between the US and China is considered as another factor benefiting Indian companies.
Equally encouraging, according a GWEC report, is the government’s announcement of a stimulus package amounting to about 10% of India’s GDP, offering another boost to the economy which had been hit hard by COVID-19. The package also provides new liquidity to the energy sector. Finally, the announced removal of upper ceiling tariffs for future solar and wind project auction bids by India’s Ministry of New and Renewable Energy (MNRE) represents a Win-Win situation, according to developers. It is thereby anticipated that the move from tariffs towards a purely market-driven approach without artificial caps, and with probably higher future tariffs, will give another boost to developer interest.
Low-wind market
The South Asian country is a typical (ultra-) low-wind (IEC III & IV) market with the exception of windy regions along the east coast and in Gujarat state. To make energy production at sites with unfavourable wind speeds economical, all main suppliers offer 2-3MW+ low and medium-wind models with a trend towards higher ratings and larger rotors. Localisation is a main theme and key success factor in India. Many German and international WindEnergy Hamburg exhibitors, including several from India, form active parts of this rapidly expanding supply chain for gearboxes, generators, castings, bearings, and rotor blades alike. Made in India increasingly serves global export markets too.
“Siemens Gamesa operates four manufacturing facilities in India with currently over 6,500MW (17% of India’s total) commissioned. SGRE’s Indian facilities’ primary focus is to serve growing domestic market demands. SGRE India also contributes to our global supply chain in places like Europe, Mexico, and Sri Lanka,” said Navin Dewaji, CEO of SGRE India.
Strategic export hub
Vestas has been present in the Indian market since 2006, and currently establishes a new nacelle and hub assembly factory in Chennai (Tamil Nadu state), quadrupling its local manufacturing jobs. The new plant is expected to be operational by the end of 2020 and will add to Vestas’ presence across India. While the new facility will serve growing regional wind markets, it further acts as a strategic export hub leveraging Vestas’ global reach, according company communication. The world’s largest supplier will inform visitors of the Hamburg trade fair about its local footprint in India, including a sales office in Mumbai, the Chennai R&D centre, and an Ahmedabad-based blade manufacturing facility.
India is a key market for WindEnergy Hamburg exhibitor Nordex Group too. Nordex operates an assembly plant in Chennai (Tamil Nadu state), manufactures rotor blades together with a local partner, builds concrete towers locally, and runs offices in Bangalore and Pune. The product market focus in India is on the 3MW+ AW3000 platform which is up to 60 per cent localised at this stage. “We have plans to also localise the Delta4000 platform in India and reach the same localisation percentage during 2020 and 2021. Overall, India will be an important supply chain and assembly base for both, the domestic sales market and other markets, complementing the presence in Europe and China”, says Senior Vice President Operations Falk Mehdorn.
R&D branch
Enercon marked its return to India since installing its last turbine in 2007, through cooperation agreements with independent service providers for O&M and repair of older turbines. The next step was the opening of an Indian R&D branch this spring, which is primarily intended to take over various support functions for the German R&D organisation which has been unable to fill many job vacancies locally. Enercon further reported a master contract with Erode-based Coral Manufacturing Works to produce generators for the new 4.2MW E-138 E2 and the latest 4.6MW E-160 EP5 flagship wind turbines. The actual ramp-up date is now uncertain due to the COVID-19 situation, a spokesperson said. Enercon experts will inform WindEnergy Hamburg visitors on why India is their first choice in their ongoing efforts to internationalise their market and supply chain.
ZF Wind Power and Winergy are two key examples of dedicated gearbox manufacture in India serving both the local and global markets. Representatives of both leading suppliers will inform WindEnergy Hamburg visitors about their products made in India, and how they can help them achieve their business goals, including internationalisation. ZFWP Head of Marketing Kris Adriaenssen said: “Our state-of-the-art manufacturing plant in Coimbatore is dedicated to delivering advanced gearbox solutions and services. It is ZF’s largest wind gearbox plant, serving the local and international markets from India as we invest in balancing our global footprint to mitigate supply risks for global customers. The Coimbatore plant performs at the industry’s highest quality levels and was honoured with the India Wind Energy Excellence Award in the category ‘Gearbox Manufacturing Company of the Year 2018’. It is an integral part of ZFWP’s service organisation for gearbox repairs and parts servicing locations across the world.”
Winergy says it has served the Indian market from Germany since 1994. The Chennai facility has supplied all leading turbine suppliers with gearboxes for the local market since 2005, continuously ramping up its production and engineering capabilities to satisfy growing demand. Winergy India’s gearbox portfolio, which continues to focus mainly on the 2MW class, is exported, as well.
In 2016, Winergy invested in a new 6MW testbench for new-generation, higher-rated gearboxes incorporating two planetary stages. These bigger units are already leaving the facilities. Further investments are being made in the local production infrastructure and enhancements of Winergy India’s in-house engineering capabilities to meet the demand for next-generation gearboxes. The company has also implemented the latest quality assurance systems and is investing in employee training.
The German engineering association VDMA represents leading turbine OEM’s, producers of main components, and many other businesses which are active with projects and production facilities in India. VDMA will welcome international wind industry stakeholders to its WindEnergy Hamburg stand to inform them about its operations and form new partnerships for doing business in India.
WindEnergy Hamburg from 1 to 4 December 2020
Every two years one of the most fascinating and promising industries meets for the leading global networking event for wind energy: At WindEnergy Hamburg, situated right in the heart of the vibrant northern German port city, 1.400 exhibitors will present their innovations and solutions. The event has a highly international profile, with half of exhibitors hailing from abroad. Leading OEMs and suppliers of system components for all stages of the onshore and offshore wind energy value chain will provide a comprehensive overview of the market. Around 600 service providers offering everything from planning and project design to installation, operation and maintenance, and through to marketing, certification and financing will complete the picture.
The Who’s Who of the wind industry will be present, including representatives of trade associations, the science community and politics. The Expo will be accompanied by a conference programme featuring top-ranking experts who will address the industry’s current key topics. The conference programme, including the “Power4Climate” and “Empowering People” insights stages, is managed by WindEurope, the co-organiser of WindEnergy Hamburg. GWEC, the Global Partner of the event, will present Global Business Insights. Originally scheduled to take place from 22 to 25 September 2020, WindEnergy Hamburg 2020 has been postponed because of the COVID-19 pandemic. It will now be held from 1 to 4 December 2020.
