According to reports, Chinese company Sinovel which is one of the largest wind turbine manufacturers in the world, has received the ‘type approval’ from the Centre for Wind Energy Technology to sell its (specified) machines in India.
This approval effectively paves the way for Sinovel’s entry into the Indian wind market.
The company has received approval for its 1.5 MW machine that has a rotor diameter of 82.92 metres and hub height of either 70 metres or 80 metres.
Sinovel has an agreement with the Ghodawat group of Maharashtra to use the latter’s facilities to produce the turbines in India.
The entry of a large Chinese manufacturer is generally seen as a major competitive force. However, the Secretary of the Indian Wind Turbine Manufacturers Association, D. V. Giri, feels that Sinovel would not be able to sell in India at prices much lower than what the other companies are selling attoday.
“At between Rs 5.75 crore and Rs 6 crore per MW, we are already very low priced,” Giri told Business Line. Selling below that level, according to him, would be tough.
“Cost might not be the only factor that IPP and captive customers who are now the major customers for wind turbines might consider. O&M capabilities and performance of Sinovels turbine in India grid conditions might also play a key role for their success in India,” says Vineeth Vijayaraghavan, Founder-Editor of Panchabuta, a renewable energy industry online newsletter.
Giri, however, said if the Chinese companies start selling in India and are backed by credit facilities from China, there ought to be some counter-balancing measures to ensure that the Indian companies “who have toiled for twenty years” are not put to a disadvantage.