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Inox Wind

Insolvency Scare For Indian Wind Company Inox Amidst Shift To Competitive Auctions

written by saurabh

Clouds of insolvency are hovering over Inox Wind’s future as the wind energy sector in India decisively moves from feed-in tariff regime to competitive auctions.

Inox Wind, an integrated wind energy solutions provider in India, has claimed that it is in ‘excellent’ financial health after a government body ordered to initiate insolvency proceedings against the company. The government body was forced to take the decision after the company failed to make payment for import shipment of some products.

“Except for a simple denial in response sent by the respondent, there are no other circumstances which can be considered to say that the corporate debtor has raised a dispute”, Inox Wind said in a statement while announcing its plan to challenge the order.

Inox Wind had reported a 23% decline in revenue for FY2016-17 to Rs 3,415 crore ($530 million) while net profit fell by 34% to Rs 302 crore ($47 million) during the same period. In May, the company had stated that it a large percentage of its portfolio would take a hit as the market moves from feed-in tariff regime to competitive auctions.

The first wind energy auction in India saw significant competition among bidders who were willing to set up more than twice the capacity on offer. The Ministry of New and Renewable Energy announced an aggressive roadmap to auction 5-6 gigawatts wind capacity every year.

Inox, itself, secured rights to develop 250 megawatts project in that state of Gujarat in the first-ever auction. The company would receive Rs 3.46/kWh (5.2¢/kWh) as tariff, the lowest for any project in India, ever.

Seeing the aggressive bidding by the project developers several state regulators hit breaks on under-construction projects. State utilities, with backing from the regulators, refused to sign power purchase agreements for these projects. This placed several hundred megawatts wind energy capacity in limbo.

Now, several states have announced that wind energy projects shall be contracted through competitive auctions only and no feed-in tariffs will be offered to wind projects. With a large number of companies operational in the Indian wind energy sector and market share skewed heavily in favour of biggies like Gamesa and Suzlon Energy, it is likely that smaller players, including Inox Wind, could face increased pressure on margins, and thus profits.

July 20, 2017 0 comment

Renewable Energy

India’s Largest Power Producer, NTPC, Enters Wind Energy Market

written by saurabh

NTPC Limited, the largest power generation company in India, has finally entered the country’s largest renewable energy sector.

NTPC Limited recently announced that it will set up its first wind energy project after months of aggressive and continued push into the solar power market.

According to the company, a 50 MW wind energy project shall be set up in the western state of Gujarat. The project shall be executed by Inox Wind Energy Limited. The project is expected to require a total investment of Rs 323.35 crore.

So far, NTPC has been pushing for solar power projects and has perhaps the largest solar power capacity addition target in India. NTPC will serve as the cornerstone of India’s ultra mega solar power projects programme. India plans to add up to 40 gigawatts of solar power capacity through this programme up setting up solar power parks of capacity up to 4 gigawatts each.

Auctions for several such solar power parks has already begun and a number of developers have commissioned large-scale projects as well.

Being a government owned entity NTPC should have little to no problem in selling the power generated from the wind energy project. Several private companies that own wind energy projects have complained about the poor off-take of power by utilities due to higher tariffs of wind power.

December 19, 2016 0 comment

Renewable Energy

India’s Inox Wind Secures Wind Turbine Orders Worth $300 Million

written by saurabh

One of India’s listed wind turbine companies just landed some huge order to set up projects before some crucial financial incentives expire at the end of the current financial year.

Inox Wind reported to the Bombay Stock Exchange (BSE) that it recently multiple orders worth Rs 2,000 crore ($300 million) to set up large-scale wind energy projects across three states. The projects shall have cumulative installed capacity of 350 MW.

The company reported that all the projects are from repeat customers which include large independent power producers and corporates. The company will supply and erect wind turbines at the project sites and will also be responsible for maintenance and operation.

All the projects shall be commissioned by March 2017, just before the scheduled changes in generation-based incentives and accelerated depreciation – two of the most significant financial reforms that have driven the Indian renewable energy market over the last few years.

Inox Wind has received several large-scale orders over the last few months and has invested in expanding its manufacturing base to cater to those orders. Last year, the company increased production capacity of its turbine manufacturing facility in Madhya Pradesh from 800 MW to 1,600 MW per year.

October 21, 2016 0 comment

Renewable Energy

India’s Inox Wind Secures 100 MW Wind Energy Order

written by saurabh

Indian renewable energy project developers continue to push with their plans to set up wind energy projects with some important financial incentives set to expire at the end of the current financial year.

One of India’s leading wind turbine manufacturer Inox Wind reported that it has received two orders of 50 MW capacity each to set up wind energy projects. The orders have come from two independent power producers that have not been named. The projects shall be set up in the states of Maharashtra and Madhya Pradesh.

One of the projects shall use the latest wind turbine launched by Inox Wind. The turbine has a rated capacity of 2 MW with rotor diameter of 113 meters. The turbine is reportedly among the most efficient turbines in India with one of the highest generation performance per kilowatt.

Inox Wind doubled its manufacturing capacity to 1.6 GW last year by expanding the facility in Madhya Pradesh. The company had announced last year that it will invest $750 million in the state of Gujarat to to set up 700 MW wind energy capacity. The company has pledged to manufacture wind turbines equivalent to 5 GW over the next 5 years.

According to sector analysts, and some developers themselves, annual capacity addition in the wind energy sector is expected to see its final bloom this financial year. The Generation-based Incentive, or GBI, is set to expire at the end of the current financial year, on 31 March 2017. Through this incentive developers get Rs 0.50 (US¢0.75) for every kilowatt hour of electricity generated.

Another incentive, accelerated depreciation shall be reduced from 80% to 40%. Through this incentive project developers can claim higher tax deductions on revenue generated from wind energy projects.

April 23, 2016 0 comment