Key Takeaways
- Envision Energy India plans to invest Rs 500 crore to expand manufacturing and support a 10 GW order book.
- The company will establish a second blade plant near Ahmedabad and a gearbox facility in Pune.
- Managing Director R.P.V. Prasad emphasizes the need for gradual localization of components to avoid rising costs and industry disruptions.
Expansion Plans and Local Manufacturing
Envision Energy India, a leading manufacturer of wind turbines, is set to invest Rs 500 crore to bolster its manufacturing operations amid a robust order book exceeding 10 GW. Holding a 45% market share in India’s wind turbine sector, the company aims to expand its production capabilities significantly. This new investment will bring the total funding by the Chinese firm in India to Rs 1,000 crore since 2016.
The company plans to establish a second blade manufacturing plant near Ahmedabad and a gearbox facility in Pune. According to Managing Director R.P.V. Prasad, these expansions will enable Envision to scale up its annual production capacity from 3 GW to 5 GW. Currently, the company is in the process of constructing the new blade plant and upgrading its Trichy unit, which will increase blade mould capacity from four to six.
Prasad highlighted the importance of meeting the government’s new RLMM norms, which call for localized manufacturing of key wind components. However, he raised concerns that a complete shift to localization without adequate demand could lead to increased costs, citing current prices for blades in India as 1.5 times higher than those abroad.
Cautions about Industry Challenges
The Managing Director warned against an abrupt implementation of the new manufacturing norms, suggesting such a move could reduce industry output to 1-2 GW. He pointed out that the grid’s unpreparedness and a limited number of domestic suppliers present significant hurdles.
Prasad proposed that the government implement a condition requiring at least 20% of manufactured components to be supplied to the domestic market, allowing 80% for export. He suggested that this dual-focused approach could provide stability to domestic demand while depending on exports.
As Envision gears up to deliver its new 5 MW turbine by October 2025, the company is also looking towards opportunities in repowering and offshore wind projects. However, Prasad noted that while programs like Viability Gap Funding (VGF) are beneficial, they are insufficient to address existing infrastructure challenges. For instance, specialized vessels necessary for installations are currently unavailable domestically, forcing reliance on costly imports from Europe and China.
With over 80 GW of installed wind capacity globally, Envision Energy Group views India as a vital contributor to its operations, having added around 2 GW of capacity in the country last year. The strategic investments and expansions planned by Envision are set to not only enhance its manufacturing capabilities but also tackle emerging challenges in the Indian wind energy sector.
The content above is a summary. For more details, see the source article.
