Vestas India to focus on large turbines

MUMBAI: Denmark-based Vestas Wind Systems, the world leader in wind energy, is repositioning itself in India and will concentrate only on larger size wind turbines. Vestas had acquired NEG Micon, another Denmark-based international player, in 2004, which had a 100% Indian subsidiary — NEG Micon (India). It will now operate in India through this company, which has been renamed Vestas Wind Technology India.

“We see a shift in demand towards higher capacity wind turbines and would like to focus on the larger size machines in India,” says Vestas president Ditlev Engel. Larger wind turbines offer better efficiency compared to smaller turbines.

Vestas is the largest wind energy company globally — with a market share of 36% — and is the second-largest in India, with a 27% market share. India is the third-largest market for Vestas, after the US and Germany.

Interestingly, India is the world’s fourth-largest market for wind power with 5,200 mw of installed capacity. “Wind energy has the potential to supplement conventional energy, not replace it entirely.

The International Energy Agency projects an annual growth of 8.8% in wind energy installations till 2030,” Mr Engel adds. “Wind power is desirable because it helps in lowering carbon dioxide emissions and, unlike fossil fuels, prices don’t go up.

However, what drives utilities is the cost argument and we have to be competitive on price. The cost of one unit of wind power now works out to e0.04/unit over the life cycle of a power plant.”

Vestas also had an Indian joint venture earlier — Vestas RRB India Ltd. The company has now transferred its 49% holding in the Indian JV to their partner, RR Bakshi, and has completely dissociated itself from the old venture.

Vestas RRB will continue to use the name and will concentrate on smaller size wind turbines while Vestas Wind Technology will operate in the large turbine business from 0.75-1.65 mega watts.