Suzlon has aggressive plans for China

Suzlon, the Indian wind energy giant, had announced back in April that it secured 200 MW worth orders in China. But apparently that was just the beginning.

Just as China is seeking to tap into its wind energy potential, Suzlon has teamed up with the Bahranian bank Arcapita to form a JV to acquire London-based Honiton Energy Holdings. Honiton, it turns out, holds rights to develop major wind farms in five provinces including the wind-rich Inner Mongolia region. Currently, it intends to develop 1,650 MW wind farm capacity.

NDRC (National Development and Reform Commission), China’s economic planning agency, set a target of 10GW of installed wind power capacity by 2010. China had 5.9 GW at the end of 2007 according to GWEC’s 2007 report. Accounting for the 1,650MW that Honiton plans for 2010, that only leaves about 2.4 GW capacity yet to be spoken for.

I find that rather underwhelming because in 2007 alone China added 3.3 GW of new wind power capacity. GWEC predicts instead that China will have 50 GW of wind energy capacity by 2015, which is more in line with expectations that China will be the largest contributor to growth in wind power industry over next few years.

Expect to see more announcements of deals similar to Suzlon’s by other wind energy giants to enter the Chinese market. This is just the beginning. Indeed.