January 6, 2011
Vedanta Group signs ~USD 191 mn agreement with Suzlon for 150 MW wind projects in India
- 150 MW of capacity for windfarms in Karnataka, Rajasthan, Tamil
Nadu and Maharashtra for Hindustan Zinc, a Vedanta Group company
- Projects will be completed in two phases first phase of 50 MW by
March 2011, and the balance 100 MW progressively by September 2011
- Investment of Rs. 865 crore (~USD 191 mn)
Pune: Suzlon Group, the worlds third leading* and Indias largest wind turbine
manufacturer, has signed an agreement with Hindustan Zinc Limited, a Vedanta Group
company and the worlds largest producer of zinc, to set up, operate and maintain 150
megawatt (MW) of wind power projects across the states of Karnataka, Maharashtra,
Rajasthan and Tamil Nadu.
The project entails a total investment of approximately Rs. 865 crore (~USD 191 mn). The
cumulative capacity of 150 MW will be completed in two phases the first 50 MW by March
2011, and remaining 100 MW progressively by September 2011 and be supplied with a mix
of Suzlons S821.5 MW and S882.1 MW wind turbine models. The power generated will be
purchased by the respective states distribution utilities at the prevailing feed-in tariff under
a long term power purchase agreement.
Speaking on the order, ">Mr. Tulsi R Tanti, founder, Chairman and Managing
Director, Suzlon Energy Limited, said, The Vedanta Group is one of Indias leading
industrial houses, and we are very pleased to be their partner of choice. This order
underlines the acceptance of wind energy as a viable and profitable solution to meet the
increasing appetite among large corporations for reducing their carbon footprint, and
meeting energy needs in sustainable manner.
Vedanta Group currently has about 125 MW of wind energy capacity in Gujarat and
Karnataka, and after completion of these new 150 MW projects, the total portfolio will
increase to 275 MW by September 2011. The companys existing wind power projects have
been registered under the Clean Development Mechanism (CDM) of United Nations
Framework Convention on Climate Change (UNFCCC) and entitled for the carbon credits.
The new projects are also planned for registration under the CDM for generating additional
revenue from carbon credits.
Vedanta Group, the metals and mining conglomerate of USD 70 billion has strong global
positioning in zinc, copper, aluminum, iron ore, lead and silver. The group is on its way to
produce 10,000 MW of thermal power for captive and commercial usage.
The wind energy sector in India is among the most evolved and matured markets in the
world today. Policy and regulatory initiatives have opened up the market to new and varied
profiles of investors from large corporates, public sector companies and independent
power to segments like captive users, and small investors. Newer revenue models
incorporating Generation Based Incentive (GBI) and Renewable Energy Certificate (REC) are
set to expand the investment base even further. A key growth driver for the sector in India
is also the growing awareness and concern around climate change. More and more
corporations trying to reduce their carbon footprint are looking to wind energy for a
solution. The potential of the market is seen in its rapid growth to become the fifth largest
wind market in the world, with more than 12,000 MW of installed wind power capacity, and
one where Suzlon is the leader with approximately 50 per cent market share.