Gamesa has chosen one of the fastest-growing markets in the world to stage its comeback in the solar power sector.
The Spanish renewable energy giant known for its massive footprint in the global wind energy market recently announced that it commissioned a 9 MW solar photovoltaic (PV) power project in the southern Indian state of Tamil Nadu.
In July, the company reported that it had started work on a 10 MW solar power project in Tamil Nadu for 3 textile companies, likely for captive consumption. While reporting its 3rd-quarter results, the company also revealed that it is planning to set up 100 MW of solar power capacity in India. The company hopes to quickly build-up on the initial orders.
Gamesa exited the solar power project development business in 2004. The company has, however, announced its plans to return to the engineering, procurement, and construction (EPC) business in the Indian solar power market.
Gamesa’s wind energy business in India is an excellent platform for the company to expand its presence in the highly competitive solar EPC business. The company has had the largest share in the wind energy business in the country for the last two years; and has emerged as a serious competitor to Suzlon Energy, probably the largest wind energy company in India in terms of cumulative capacity installed.
Incidentally, Suzlon Energy too has entered the solar power market. The company recently participated in some state solar power auctions.
The shift towards solar power is mirrored in the government’s policies as well. The government policies seem favoured towards solar power. India has announced a target to increase solar power capacity from its current 4.5 GW to 100 GW by 2022, while the wind energy target is for 60 GW operational capacity by 2022, up from current 25 GW.