About Renewable energy Sector
According to the Global Trends in Renewable Energy Investment report, the global deployment of wind and solar projects reached a new record level in 2019, as 184 GW of new Renewable energy capacity, excluding hydro, was added in 2019, representing a 12% annual increase.
Falling costs and a push to zero emissions energy sources presented new opportunities for the Renewable energy sector which attracted investment to the tune of $282.2 billion in 2019.
The Global Renewable Energy sector is on the threshold of a revolution, it is expected that the next decade will be the one that shall help renewable energy to grow to its full potential. Moreover, today clean energy is also amongst the most affordable energies, which shall benefit the sector at large and certainly pitches renewable energy to be a mainstream energy source especially in the post-pandemic scenario, where there is a focus on sustainable living and reducing emissions.
- Falling costs and a push to zero-emissions energy sources presented new opportunities for the Renewable energy sector
- GWEC’s Global Wind Report estimates 355 GW of new capacity will be added in the next five years.
- The Government has set a target to achieve 60% of India’s installed electricity generation capacity from clean sources and aims to achieve 510 GW of renewable energy capacity by 2030.
- Suzlon’s focus for FY21 remains to maintain our leadership position in India and ensure sustainable growth of the Company in line with the expectations of our stakeholders while creating a long-term asset for our shareholders.
Wind Energy – Global Outlook
In 2019, 60.4 GW of new wind energy capacity was installed, taking the cumulative global installations to 651 GW at the end of CY19, an increase of 10% compared to 2018. Market-based mechanisms drove this growth with more than 40 GW of wind capacity being auctioned worldwide. China, US, UK, India and Spain continue to be the top five markets accounting for 70% of new capacity.
GWEC’s Global Wind Report estimates 355 GW of new capacity will be added in the next five years, taking the global installed capacity to over 1,000 GW by CY24. We could see around 71 GW of wind energy added each year.
Wind Energy – India Outlook
With 2.3 GW installed in CY19, India was the second leading country in the Asia-Pacific region after China, which installed 26.2 GW. India is the world’s fourth-largest onshore wind market by installations, with 37.5 GW of wind capacity as of CY19 and has the potential for more than 695 GW at 120 meters. Today, wind energy accounts for 10.1% of overall installed power capacity in India and 44% of renewable energy capacity in the country. The ever-increasing demand for energy in India, can no longer be met through traditional energy sources alone. Renewable energy must be a major part of the solution because it can meet the demand in a cost–effective and sustainable manner, while at the same time achieving broader socioeconomic objectives and manage climate change concerns.
Recently, installations of wind power in India has decelerated and the market was greatly constricted last year, with only 2.3 GW installed in 2019. Several factors have led to the decline in the installation, including issues related to market transition, grid, land availability and payment delays for renewable projects. However, a lot of work has been done by the industry and the government to resolve these issues.
Suzlon Energy Chairman and Managing Director Mr. Tulsi Tanti strongly believe that the worst is behind us not just as a company but as a sector as well. Despite a prolonged transition, wind energy in India is at an inflection point today. Policy issues are being ironed out and the market is now on a path to recovery and tenders from earlier auctions are yet to close making order intake promising. Efforts towards grid infrastructure and land allocation are being strengthened to resolve the execution challenges facing India’s wind market. The recent announcement by the Power ministry to extend waiver of Interstate Transmission System (ISTS) charges and losses on supply of power generated from wind sources until 30 June 2023 will provide a boost to the sector. The next five years will see a huge positive momentum in the wind industry at a holistic level.
Suzlon – FY20 Performance
Liquidity constraints and the ongoing debt restructuring process impeded Suzlon’s operations, and affected FY20 performance. Despite the testing times, Suzlon commissioned 350 MW in FY20 which speaks volumes of their strong technical and project execution capabilities built over two decades of experience in the Indian market. Suzlon continued to get orders from marquee customers who demonstrated faith in their products and technology despite of financial challenges faced by the Company. Suzlon’s Operation and Maintenance Services (OMS) business continued to deliver strong performance while achieving 96.6% machine availability for their customers. They were also successful in adding 88 MW of third party business to their OMS fleet.
All Suzlon sites were operational and working despite several challenges for generation of electricity throughout the lockdown period to serve the nation. Today they are the custodians of over 12.8 GW of wind energy assets under service in India making them the 2 largest Operations and Maintenance Company in the Indian power sector. They also have around 2.5 GW of wind assets under service in the international markets. Suzlon’s forging and foundry business- SEForge has shown excellent performance by developing sizeable third-party business and has achieved significant growth in the export business, reducing its dependence on the parent company for business.
FINANCIAL HIGHLIGHTS (CONSOLIDATED)
The Future is Bright
India’s commitment to Renewable Energy remains intact and we strongly believe that the long-term fundamentals of the wind energy industry are sound. The Government has set a target to achieve 60% of India’s installed electricity generation capacity from clean sources and aims to achieve 510 GW of renewable energy capacity by 2030. Today, Wind energy is competitive with other sources of energy and has emerged as a mainstream energy source. Post the Covid-19 crisis, the Government will prioritize health and economic recovery, there will also be an opportunity for clean energy transition as part of coping strategies and support measures to revive the economy. Renewable Energy will remain the catalyst to support and stimulate the global economy as were cover from the Covid-19 pandemic.
Suzlon need to convert ‘crisis into an opportunity’ during this time of economic slowdown, any cost-reducing proposition is the smarter alternative and Renewable energy delivers cheaper and cleaner electricity. With tough times behind us, going forward Suzlon is well positioned to capitalize on the market opportunities with superior technology, project execution experience spanning over two decades, new generation turbines offering higher energy yield, presence across the entire value chain, vertically integrated operations and best-in-class service capabilities.
Suzlon focus for FY21 remains to maintain our leadership position in India and ensure sustainable growth of the Company in line with the expectations of our stakeholders while creating a long-term asset for our shareholders.