State Governments need to align their Policies with Central Government for seamless execution
December 07, 2020. By Manu Tayal
We hope that the Government will continue to facilitate the traction in the renewable energy capacity addition, by way of creating a conducive environment where project executions can be expedited to be able to achieve the government’s aggressive renewable energy targets. Finally, yet importantly, the State Governments need to align their policies of permits and approvals (for setting up renewable energy projects) with the Central Government’s renewable energy policy for seamless execution, says Thomas Scarinci, Senior Vice President, Product Management, Vestas DK and Vickram Jadhav, Vice President, Sales, Vestas India, in an exclusive joint interaction with Manu Tayal, Associate Editor, Energetica India. Scarinci and Jadhav discussed in detail about Vestas’ business expansion plans in India, it’s product offerings, facilities setup under Make in India, expectation from the Government etc. Here're the edited excerpts from that exclusive interview, which was published in the Energetica India magazine:
Q. How do you see the significance of timing of Vestas’ expansion decision into the Indian market? What opportunities Vestas eyes? Explain.
India is the world’s fourth largest wind energy market, where the energy demand is expected to double and the government targets to add around 100 GW wind power in this predominantly low-wind market by 2030.
Vestas’ new V155-3.3 MW wind turbine is designed to support India’s push for renewable energy. The timely introduction of the V155-3.3 MW platform has ensured that Vestas is well positioned to support the country’s renewable energy targets and upcoming auctions. The new turbine has been unveiled in India first, a strategic market for Vestas. It is designed specifically to meet customer needs and market requirements in low and ultra-low wind conditions prevalent in India and also cater to the hybrid auctions coming up in India.
Vestas has helped shape India’s renewable energy industry for twenty years and over this period we have installed close to 4GW of wind turbines in India. We see India as a major focus market, and we believe the country will become one of the biggest wind markets in the world.
As the turbine will be predominantly locally manufactured and sourced, it also reinforces Vestas’ existing commitment to India.
Q. Will the production facilities of Vestas in India export as well, post commencement? Which regions - you are targeting via these facilities? Also, how much will be the targeted revenue share?
As a strategy, Vestas believes in ensuring optimal utilization of its production capacities and supply chain around the globe to best suit organizational interests and meet customer demands. Now, with introduction of the V155 – 3.3MW, a product customized for the Indian market, the focus of the Indian manufacturing facilities will be to cater to the Indian customers. Having said that, Vestas will continue to produce nacelles and hubs in Chennai for exports too for optimum utilization of local manufacturing capacity, mainly exporting these to the USA. Vestas is also leveraging India for exports to develop the local supply chain and one such example is our partnership with TSV in Chennai, to produce coli site sets (parts needed for assembling the turbine on site) for global projects.
Q. Recently, Vestas has introduced its new solution for the Indian market. What are its special features? Can Indian customers expect some tailor-made solutions as well specific to their needs?
With the introduction of the new V155-3.3MW we believe we will be able to provide an energy solution that will harness India’s unique wind resources, particularly it’s low to ultra-low wind speeds. As a result, customers can expect the optimal cost of energy for the lifetime of their fleet.
The new turbine has been built on the globally proven 4MW platform. The 4MW platform has been installed in more than 10,000 turbines (37 GW) in 47 countries and has a competitive and proven low cost of energy and business case certainty.
Some of the most important features of the V155-3.3MW turbine include:
- Optimized for India
- Market leading performance
Q. What are your plans for Indian market in coming years? How much investment Vestas is expected to do here? Also, factory expansion plans.
Vestas has decided not to disclose the exact investment figure at this point of time. However, we can tell you that Vestas will increase its already prominent manufacturing footprint in India by establishing a new converter factory in Chennai and expanding its current blade factory in Ahmedabad. These investments follow our previously announced new nacelle and hub factory in Chennai, which is currently under construction. The planned production ramp-up for India will lead to creation of around 1,000 new jobs in the next year or so. It will also expand Vestas’ existing Indian supply chain and as a result, unlock the country’s broader supply chain potential.
Q. Wind energy market growth witnessed slow pace in recent past in India, what factors you feel were responsible for the same? In near future, how do you analyze the wind energy market growth for Indian market?
Vestas believes in the renewable energy story in India, but it is also true that the recent past has been challenging. As an industry, lately, we have faced project executions delays because of land connectivity and permits. These have slowed down the growth in the wind sector. Having said that, we also firmly believe that India’s energy grid cannot stabilize without the growth of the wind sector. Wind will play a key role in meeting India’s growing energy demands. We expect things to look up soon.
Q. What kind of support Vestas seeks from the Indian government during its expansion phase?
India has always been and will continue to be a strategic market for Vestas. We have received extensive support for all our expansion plans from the Indian government in the past and we hope to do so in the future as well. More specifically, we hope that the Government will continue to facilitate the traction in the renewable energy capacity addition, by way of creating a conducive environment where project executions can be expedited to be able to achieve the government’s aggressive renewable energy targets. Finally, yet importantly, the State Governments need to align their policies of permits and approvals (for setting up renewable energy projects) with the Central Government’s renewable energy policy for seamless execution.
Q. How Vestas has planned imparting technologically advanced skills to its local employees in India both new and existing?
As an organization, Vestas has always had a culture of enablement. Skill development is a continuous process at Vestas and we are constantly focused on offering our employees the right development and learning opportunities.
We don’t only want to bring new jobs to India, we want to go much beyond that. We want to upskill the work force, enabling more and more people to get involved in clean energy. Vestas Training Centre in Chennai has already been declared by ‘Global Wind Organisation’ as the only wind OEM in India to provide training on “Working at Heights”.
Vestas is also the Indian government’s official partner for the “Skill Development” initiative. We have worked with the Skill Council for Green Jobs to develop 10 models for hundreds of workers to obtain the necessary skills for the green jobs of the future.
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