Large orders to set up wind energy projects continue to flow across the Indian market as developers eye crucial deadlines to commission their respective projects.
In the latest market development, one of India’s few listed wind turbine manufacturers received a Letter of Intent from Adani Green Energy to erect, commission, and maintain 501.6 megawatts of wind power capacity. These projects were awarded to Adani Green Energy through the auctions conducted by the Solar Energy Corporation of India (SECI).
Inox Wind, listed as INOXWIND at the National Stock Exchange (NSE), informed the Indian bourses about this development. Inox Wind, like many other wind turbine manufacturers, has been a beneficiary of the auction regime introduced in India since February 2017.
We recently summarized the orders placed by several successful wind energy project developers with Indian and foreign wind turbine manufacturers. The likes of Suzlon Energy, Siemens Gamesa, GE Renewable Energy, Vestas, and Senvion landed big orders from project developers looking to implement projects they secured through competitive auctions over the last two years.
India has conducted a total of nine competitive auctions in the onshore wind energy market since February 2017. A total of 9.8 gigawatts of capacity has been allocated through these auctions. This capacity has been allocated across 23 project developers, with the top three developers accounting for 32% of the total allocated capacity.
ReNew Power secured 1.23 gigawatts of capacity with successful participation in five auctions. Adani Green Energy has won just over 1 gigawatt capacity across six auctions, and Mytrah Energy has won rights to develop 950 megawatts of capacity. Inox Wind itself has also won projects with cumulative capacity of 850 megawatts. The company, however, has not won any projects since August 2018.
While the sudden bust of orders for the wind turbine manufacturers may indicate a very healthy market condition for them, the ground reality is very likely to be the opposite. With the complete shift to competitive auctions in the Indian wind energy market, orders for these company have been completely tied-up with these auctions.
The share price of Inox Wind has corrected from close to Rs 500 ($7) in mid-2015 to less than Rs 100 now (1.4). Similarly, shares of Suzlon Energy have crashed from around Rs 400 ($5.6) in early 2008 to Rs 5 ($0.07) now.