Siemens Gamesa Not to Bid for Wind Projects

In Clean News, News, Renewable Energy, Wind

Owing to changes in Indian Wind Power regulatory policy, Siemens Gamesa Renewable Energy, the second-largest wind turbine maker in the world, will stay away from bidding for Indian wind power projects.

The company, however, is looking at a strong engineering procurement and construction (EPC) market in the country as the demand for cost-efficient wind turbine generators grows.

India is a key market which accounted for 30 per cent of Siemens Gamesa revenue (Mw equivalent) till last year. As there was a freeze in the Indian market after bidding was introduced. The company, in its results for the quarter ended June 2017, said its revenues were down 7 per cent to €2,693 million owing to a “temporary downturn in the Indian market”.

It also reported a 25 per cent decline in sales and 21 per cent decline in y-o-y EBIT (earnings before interest and taxation).

Last year Government of India retired the 25-year-old feed-in tariffs (FiT) mechanism to award wind projects and introduced competitive bidding.

This transition resulted in a freeze in the Indian market as the wind energy industry  is known to have FiT as a mechanism in young market. Bidding supports a mature market so the players were taken by surprise and thus a freeze.

Join Our Newsletter!

Love Clean Future? We love to tell you about our new stuff. Subscribe to newsletter!

Mobile Sliding Menu