Connect with us

Hi, what are you looking for?

Mexico's emerging as a key driver of growth in the international wind power market and industry, and India's Suzlon has plans of playing a major role in contributing to the realization of Mexico's renewable energy and carbon emissions reduction goals.

Clean Power

Suzlon’s Bold Bid to Invest $3B in Mexico Wind Farms

Mexico’s emerging as a key driver of growth in the international wind power market and industry, and India’s Suzlon has plans of playing a major role in contributing to the realization of Mexico’s renewable energy and carbon emissions reduction goals.

Photo courtesy: Suzlon

The world’s fifth-largest wind turbine manufacturer, India’s Suzlon Energy is making bold bids to expand its business even as it scrambles to raise the funds necessary to meet this year’s bond redemptions. Next for Suzlon in terms of international expansion: Mexico.

Suzlon’s CEO for Latin America, Erik Winter Petersen, has announced a plan to invest some $3 billion in wind energy projects in Mexico’s Baja California and Oaxaca regions, according to a Mexico Today report.

Mexico’s wind energy capacity is growing rapidly as the national and regional governments have been focusing on fostering renewable energy and clean technology development and adoption as a means of generating jobs and economic growth, as well as conserving the natural environment and precious resources. Mexico’s national parliament passed a climate change law earlier this year, and wind energy plays a significant role in Mexico’s National Renewable Energy Strategy.

Mexico Emerging as Wind Power Growth Leader

Mexico had just 3 MW of wind energy capacity in 2005; but its total capacity is expected to reach 2,000 MW by the end of 2012. The Mexican government forecasts that wind power will double to 4 GW by 2015 and triple to 8 GW by 2020. Achieving 2012’s goal would make Mexico the world’s fastest-growing wind power market.

Baja California and Oaxaca are prime locations when it comes to Mexican wind energy project sites. Eighteen of Mexico’s 27 wind power installations are located in Oaxaca alone, with major international wind turbine and wind power project developers (including Acciona, Gamesa, and Vestas) having announced investments in the two Pacific coast regions.

Suzlon has yet to invest in any projects in Mexico, but that’s set to change drastically given the announcement.

Mexico’s onshore wind capacity has been estimated at 71 GW, and the federal government believes that wind power can meet 30% of its electricity needs, according to a Recharge news report. Suzlon and other wind energy developers keen on investing in Mexico face challenges in realizing their ambitions, as does the Mexican government, however.

Suzlon will need to compete against other bidders in wind farm project tenders held by the federal government. Government administrative procedures also need to be streamlined to better promote private investments, as in the procedures regarding issuance of power purchase agreements (PPAs), Petersen told Recharge.

Then there’s the issue of transmission capacity and grid interconnections, a problem that’s held up construction and constrained more efficient use of intermittent wind-generated electricity on electricity grids. A plan’s been put forward that entails wind farm project developers sharing the cost of building them.

Suzlon’s Financial Challenges

Suzlon and other wind energy industry leaders face significant financial challenges even as they embark on major international business development efforts as well. Suzlon has posted losses for three years running now, and it’s been scrambling to avoid a bond default.

The company faces a $358 million convertible bond redemption on June 12, with another coming due in October. Fortunately for Suzlon, a group of around 20 banks have thrown the company a lifeline, having pledged to loan it as much as $300 million.

Carrying nearly $2.1 billion in debt on its books as of end March, management still has more to do to assure the company’s ongoing viability, though. It intends to continue trying to sell non-core assets, as well as raise more capital through the bond or equity markets.

Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Written By

I've been reporting and writing on a wide range of topics at the nexus of economics, technology, ecology/environment and society for some five years now. Whether in Asia-Pacific, Europe, the Americas, Africa or the Middle East, issues related to these broad topical areas pose tremendous opportunities, as well as challenges, and define the quality of our lives, as well as our relationship to the natural environment.


You May Also Like


By 2050, airport electricity demand will be in the range of four times as high as 2019 levels, and by 2050, five times as...

Clean Transport

Green H2 or not, hydrogen trains will help the Czech Republic cut ties with Russian gas suppliers.

Clean Power

Wind power can help solve the shipping industry's carbon woes, as demonstrated by the new Seawing sail from the French firm Airseas.


How much electricity will be required for electric aviation and how much will it cost?

Copyright © 2022 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.