SYNOPSIS ON

ANALYSIS OF WIND POWER INDUSTRY SUZLON ENERGY LIMITED

SUBMITTED BY Ajay Badrinarayan Pandey

ENROLLMENT NUMBER 10AM60801

PROJECT GUIDE Mr. Vatsal Thakkar

SUBMITTED TO

INDIGROW INSTITUTE OF PROFESSIONAL STUDIES

INTRODUCTION

Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, wind pumps for water pumping or drainage, or sails to propel ships. The global economy is struggling to sustain growth with oil above US$ 120 barrel, which is expected to cross US$ 200 per barrel in the next two years. In the backdrop alternative energy sources have achieved significance. Wind power being a cleaner one such alternative, it has attracted the interest of many governments and environmentalists. The total amount of economically extractable power available from the wind is considerably more than present human power use from all sources. At the end of 2010, worldwide nameplate capacity of wind-powered generators was 197 Gigawatts (GW). Wind power now has the capacity to generate 430 TWh annually, which is about 2.5% of worldwide electricity usage. Over the past five years the average annual growth in new installations has been 27.6 percent. Wind power market penetration is expected to reach 3.35 percent by 2013 and 8 percent by 2018. Several countries have already achieved relatively high levels of wind power penetration, such as 21% of stationary electricity production in Denmark, 18% in Portugal, 16% in Spain, 14% in Ireland and 9% in Germany in 2010. As of 2011, 83 countries around the world are using wind power on a commercial basis. Suzlon Energy Ltd. (Suzlon), the worlds fifth leading wind turbine maker, with 10.5% of global market share is leaving no stone unturned to compete with these players. On June 6th, 2008 Suzlon announced the acquisition of Arevas total stake of approx 30% in Repower systems AG of Germany taking its total stake to 66%. The acquisition will give Suzlon the much needed access and to Repower technology in wind turbine, which will be helpful in tapping the fast growing market and in competing with global players.

NEED OF STUDY

With global warning taking over the hot topics of conversation in most media publications and TV channels, it is always worth exploring different ways to make energy. Generally, making and using energy is what creates global warming, to a point where the planet will not be able to survive in the long run if something is not done soon. There are lots of different eco-friendly ways to create power, including wind power. By using a wind turbine and a mechanism inside, the rotor powers the mechanism, which makes and stores energy. Companies than then transform this energy into usable power in the form of electricity, which is what households need to survive. So this project is an attempt to get an idea about the wind power industry in India and also the market for wind power manufacturer companies in India; Suzlon in particular.

SCOPE OF THE STUDY

A nations development is measured by the growth of agriculture, infrastructure for industrial growth and, importantly, power generation. Electric power is universally required in the production of commodities and services and for their transformation. In India, after independence, the emphasis has shifted from agriculture-related activities to industry-related activities with a view to achieve optimum benefits from both the sectors. The growth of the industrial sector has resulted in a phenomenal increase in the demand for power, generation of which could not be stepped up correspondingly due to constraints in one of the low-investment and high-yield groups of power generation for India. Much enthusiasm had been evinced in the 1990s to give a thrust to this area, and activities such as identifying wind sites, grid connection, etc. gained pace. Several incentives were extended to boost private sector participation and the response was overwhelming. Some rural areas, which hitherto had been struggling with poor agricultural resources with no other scope of employment, came suddenly into the limelight once they were found to possess wind resources. The land that had earlier been viewed as non supportive to livelihood became prosperous overnight. India will be left behind if it does not look forward and abandon the preference to century-old concepts of coal-generated power. Power shortage blinds the eye to the hazards of pollution and environmental risks. India should wake up before irretrievable damage is caused to their environment. Indias aim should be to reach the peak of 45,000MW (wind potential in India), and steps should be taken to recapture the fading enthusiasm. More developer-friendly schemes have to be introduced to encourage participation by more entrepreneurs in this field. A sense of pride is to be generated among wind-power promoters as they are rendering a valuable service to the nation. Besides depreciation benefits, some of the other aspects that would lead to enhanced utilization of wind power are: Public sector undertakings dealing with power generation should give priority to establishing wind power projects for power generation Concessional rates should be provided for using government media for product promotion

Raising money by releasing Wind-Power Bonds to attract greater public participation in mobilizing finances needed Special green-power subsidy to be extended to producers of wind powered energy

Wind energy in India has an extremely bright future and there is no doubt that, in the renewable energy sector, wind power would play a predominant role in adding clean and nonpolluting energy to the countrys grids. Wind power will definitely be one of the most successful clean and nonpolluting power generation technologies in the coming years not only in India but worldwide. Future is optimistic, given the increased awareness about benefits of renewable energy and ambitious renewable energy targets by global governments. Through its diverse presence across geographical locations, Suzlon can leverage the global market. Although its difficult to comment on the short term growth prospects due to lack of credit availability but long term prospects are definitely bright.

OBJECTIVES OF THE STUDY

To understand the current market for wind power industry in India To analyze the financial stability of the Suzlon Energy Ltd. To study the growth potential of Wind power industry in future To examine the growth potential of Suzlon Energy Ltd. in future

LIMITATIONS OF THE STUDY

Total project done is based on the secondary data; primary data is available at some extent. Time constrains. Resource constrains.

HYPOTHESIS

H0 = Wind power is a very effective alternative source of producing energy H1 = Wind power is not as effective alternative for production of energy as it looks

DATA COLLECTION

Secondary Data: 2005-06 to 2009-10 annual reports

www.suzlon.com

www.wikipedia.org/wiki/Renewable_energy www.renewableenergyindiaexpo.com www.sebi.gov.in/

RESEARCH TOOLS APPLIED

Research Type Comparative analysis Ratio analysis Liquidity Activity Leverage Profitability Market Ratio

REFERENCES AND BIBLIOGRAPHY

The data used to study has been collected from the following secondary sources Newspapers Magazines Journals Books Internet

2005-06 to 2009-10 annual reports www.google.com www.search.com

www.suzlon.com

www.wikipedia.org/wiki/Renewable_energy www.renewableenergyindiaexpo.com www.sebi.gov.in/