Wind turbine manufacturer Gamesa (GAM.MC) will supply 2 GW of turbines to India over the next five years – in one of the largest turbine orders in India and the world to date.
The deal represents a turning point in the Indian wind energy market.
In 2010, 2.5 GW of wind capacity was installed in 2010 in India. The country has an ambitious target of 5 GW a year through 2015, which would bring the total to 64 GW by 2020.
The wind sector in India has been growing at 30-40% a year over the past five years – a growth rate that’s expected to increase significantly in the coming years.
Gamesa will deliver 150 MW of turbines to utility Caparo Energy India Ltd (CEIL) in 2012. Turbines range in size from 850 kW to 2 MW.
Gamesa will manufacture the turbines at its factories in India. In March, Gamesa announced it would invest over EUR 60 million through 2012 to build new manufacturing plants to meet India’s growing demand.
In the 1Q11, Gamesa’s sales in India expanded 8-fold and accounted for 24% of revenues for the quarter. After just 18 months in India, Gamesa has a 10% market share, making it the third largest wind firm in the country, according to the Indian Wind Turbine Manufacturers Association (IWTMA).
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