India Wind Market for International Investors

India Wind Power for International Investors
Detailed Guide on Wind Power Developer Business Opportunities for International Investors

This report provides critical insights on opportunities for International investors keen on investing in developing wind power plants.

To know more about purchasing the Expert Report: Send an email to Muthukrishnan – muthukrishnan@eai.in

Background

India’s wind power installed capacity in 2016, is estimated to increase 20% over last year to 2,800 MW, led by favorable policy support that has encouraged both independent power producers (IPP) and non-IPPs.

India’s wind energy market is expected to attract investments totaling Rs 1,00,000 crore (US$ 14.91 billion) by 2020, and wind power capacity is estimated to almost double by 2020 from over 23,000 MW in June 2016, with an addition of about 4,000 MW per annum in the next five years. Over the last five years, wind sector has whipped up 17% annualized growth in installed capacities owing to favorable policies.

Some of the factors driving investments in the sector are:

  • Availability of generation-based incentives (GBI)
  • Attractive internal rate of return (IRR) for wind power projects
  • Wind power has either achieved or is close to attaining grid parity in some regions

 

Prominent Investments in Wind Energy Sector

  • IDFC Private Equity– Investments of more than 200 million USD in firms like BP Energy India and SE Forge in September 2016
  • Merrill Lynch– Invested about 60 million USD in Vestas RRB India in 2007.
  • Goldman Sachs – Goldman Sachs (NYSE: GS), a leading global investment bank and active investor in alternative energy/clean technology, in Septmeber 2011, invested about Rs 1,000 crore in ReNew Wind Power Pvt. Ltd. (“ReNew Wind Power”), a renewable energy independent power producer (IPP).
  • Morgan Stanley Infrastructure Partner – In 2012, Morgan Stanley Infrastructure Partners invested Rs 1,200 crore in a wind farm owned by Singapore-based Continuum Wind Energy for developing 500 MW assets.
  • CLP– CLP is one of the largest wind power developers in India with over 1000 MW of committed wind projects – approximately 920MW of this capacity is already commissioned and the rest is in various stages of development

Mergers and Acquisitions

  • In October 2015, Goldman Sachs-backed ReNew raised around $200 million from Abu Dhabi Investment Authority. Around $65 million was put in by Goldman Sachs and Global Environment Fund.
  • In 2015, Singapore-based Sembcorp Utilities Pte Ltd bought stakes worth $169 million from Green Infra, whose majority stakeholders are infrastructure-focused private equity fund IDFC Private Equity Fund II and IDFC Private Equity Fund III.
  • In 2015, Singapore government’s investment arm, GIC, signed an agreement with Greenko Group Plc for the $253-million acquisition of Greenko Mauritius, which runs the Indian assets as well.
  • In Feb 2015, Emerging markets-focused private equity major Actis has committed an investment of $230 million (Rs 1,400 crore) to create an India renewable energy platform christened Ostro Energy
  • In 2015, Renewable energy firm Enel Green Power SpA (EGP) acquired a majority stake in BLP Energy (BLP), the utility scale wind subsidiary of Bharat Light & Power Pvt Ltd, a clean energy company floated by former CEO of GE India, for €30 million ($33.5 million or Rs 221 crore).

 

About the Report

The government’s 60 GW target for wind power capacity by 2022 has been a crucial factor driving investments in developing wind projects, as indicated by the above developments.
The India wind power for International Investors Report is a focused guide designed for a prospective foreign investor.

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Who should purchase this report?

  • International corporates interested in venturing into the wind
  • Foreign Financial institutions and Banks
  • Venture capital firms & investment banks exploring investments in this domain

What are the key aspects covered in this report?

This report provides unique insights and critical data points on the following topics.

  • Potential returns associated with different wind energy business opportunities
  • Risks faced by businesses entering wind power sector as well as risk mitigation strategies for international investors
  • Emerging business opportunities and next steps to be taken
  • Secondary-market for purchasing wind power plants
  • Investment climate for wind energy investments in different states
  • Recent wind energy investment trends in the Indian market and their success/failure stories

Why should you buy this report from EAI?

EAI’s Expertise in the Renewable Energy Sector

  • EAI is one of the most respected brands in the Indian renewable energy sector
  • Our expertise in the technical, market and commercial aspects of various renewable energy technologies has benefitted stakeholders ranging from industries, commercial establishments, small businesses, entrepreneurs, government, educational institutes and more
  • Through our focused consulting assignments and research reports, and our team of industry specialists, we bring in in-depth expertise in many critical aspects of wind power

EAI’s Contacts in the Indian Renewable Energy Sector

  • Being a pioneer in renewable energy industry research and consulting (we have been serving the Indian wind power market since 2009)

  • We own some of the leading online resources for renewable energy in India, EAI has one of the most extensive contact networks with renewable energy industry specialists and experts in the field.

Snapshot of Indian Wind Power Market

cumulative-year

annual-year

 

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To know more about purchasing the Expert Guide: Send an email to Muthukrishnan – muthukrishnan@eai.in

Key Topics Covered

Wind Power Potential and Growth Trends

  • Wind energy potential in India

  • Wind power growth trends
    • Wind Power Installed Capacity
      • Region-wise
      • Based on business models
    • Wind tariff trends
      • Region-wise
      • Based on business models
  • Lever’s affecting growth of wind energy in India
  • Wind energy capacity forecast

Business Opportunities along the Wind Energy Value Chain

  • Wind power components and technologies
  • Analysis of wind power plant opportunities

The opportunities discussed include

    • Wind power plant development
    • Secondary market for wind turbines
    • O&M
    • Other opportunities
      • Asset Management
      • IT solutions
      • Mergers and Acquisitions
      • Support services – project liasoning, Owner’s Engineer etc.

The various wind power generation opportunities are evaluated based on the following set of parameters

    • Competitive landscape
    • Investment required
    • Business models
    • Payback period
    • Margin potential
    • Indicative returns/margins

Scenario Analysis of Wind Power Plant Opportunities

This section performs a returns analysis of various business opportunities.

  • Analysis of potential returns
    • Wind power plant development
    • Secondary wind farms
  • Analysis of margin potential for purchasing wind turbines on the secondary market

The input and output parameters for the analysis is listed below

  • Input parameters
    • Plant capacity
    • Interest rates
    • CUF
    • PPA Tariffs
  • Output parameters
    • Payback period
    • Equity IRR
    • Project IRR

Financing and Funding Activity

  • Top investors in the wind sector

  • VC, debt funding deals

    • Year-over-year trends

  • Mergers and Acquisitions

  • Bankruptcies, restructurings, and downsizings

Risks and Mitigation Strategies

The major risks along with suitable inputs for mitigating these risks will be provided in this chapter for all the different business opportunities.

  • Project Completion Risks
    • This refers to the various time delays and cost overruns which directly or indirectly affect the course of the entire project
  • Country Risks
    • This covers the economic and political risks including government stability, ease of doing business and financial risks like payment delays, currency risks, interest rates and insurance risks
  • Operational Risks
    • This covers the risks associated policy uncertainties, infrastructure constraints, supply constraints and technology improvements
  • Market Risks
    • This covers the risks associated with competition from wind sector, price pressures, and marketing

Project Allocations, Announcements and Government Policies

  • Wind power project bids and allocations

  • Wind auction announcements

  • Central and State Policies

  • State-wise attractiveness of foreign ventures

The evaluation is based on parameters like

    • Ease of doing business
    • Wind power potential in the state
    • Payments by state Discoms
    • Wind policy favorability
    • Infrastructural support and other parameters

Case Studies

  • Leading international investors and corporate-backed investments in India along with their success and failure stories
  • Some prominent wind energy investments pouring into India that will be covered in the report include
    • Merrill Lynch
    • Goldman Sachs
    • IDFC Private Equity
    • Morgan Stanley Infrastructure Partner

 

To know more about purchasing the Expert Guide: Send an email to Muthukrishnan – muthukrishnan@eai.in

PRICE OF REPORT: Rs 67,500 (US $999)

About EAI

EAI (Energy Alternatives India) is India’s leading renewable energy research, consulting, and catalysis firm. EAI runs India’s largest renewable energy website (Eai.in), the country’s largest renewable energy newsletter (EAI Daily) and India’s largest renewable energy community (EAI Club).

The research team has published many globally acclaimed reports across the entire sustainability spectrum. Customers for these reports include over 75 companies from Fortune 500 and over 10 from Fortune 100. The bio-division of EAI runs the world’s foremost resource on algae biofuels, Oilgae and a dedicated resource on deriving sustainable materials from castor oil, CastorOil.in

EAI is headquartered in Chennai, India.

International Clients whom we have assisted

  • Our team assisted a large American multinational in setting up facility in South India to gain a much better understanding of the economic feasibility of wind power and to tie-up with wind power IPPs.

  • EAI’s consulting team has assisted global and Indian blue chip companies in their sustainability efforts. Our consulting clients include the World Bank, Bill & Melinda Gates Foundation, Reliance, La Farge, Vedanta, Tamil Nadu & Karnataka State Governments, MNRE, and more.

 

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