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Suzlon may set up South African wind-turbine equipment plant
Bloomberg reports that Suzlon Energy, India's biggest wind-turbine maker, may build a plant to make equipment for turbines in South Africa, as part of the company's SA expansion drive. Silas Zimu, chief executive officer of Suzlon's South African business, said in a phone interview from Johannesburg that Suzlon is studying potential sites in the Eastern Cape and Western Cape.
A team will evaluate the sites next week, he said, declining to disclose the investment amount for the plant.
South Africa is trying to reduce its reliance on fossil fuels while expanding power capacity. Most of the country's electricity is generated from coal by state-owned Eskom, which said in November the gap between electricity supply and demand is "tight." Zimu said that Suzlon plans to make towers and blades for wind turbines in South Africa. The manufacturing plant would need to produce about 400 megawatts worth of equipment a year to justify the investment.
The Pune, India based Suzlon hopes to get a power-purchase agreement for the wind project in March or April, Zimu told Bloomberg. That will allow for work at the project to start. Last year Suzlon signed a contract with African Clean Energy Developments Pty. to supply and construct the turbines. In August South Africa issued a request for proposals by companies interested in building renewable energy plants with a combined capacity of 3,725 megawatts by the end of 2016. Suzlon was included in the preferred bidders appointed in December, for its proposed 135-megawatt Cookhouse wind farm.
Read the full article on www.bloomberg.com.
