MANILA, 3 May 2007 — The Asia Development Bank (ADB) said yesterday it had approved a $79.3 million loan to India’s largest private power company to set up and operate wind energy facilities.
The loan will support Tata Power Co. Ltd in setting up and running wind power facilities in the state of Maharashtra which will produce 100 megawatts of electricity, the ADB said in a statement from its Manila-based headquarters.
The rupee-denominated loan comes without government guarantees and is aimed at developing alternative, environmentally sustainable energy sources, the ADB said.
It will also hopefully boost economic growth and encourage the private sector of the country and the international community to cooperate in renewable energy development, the ADB added.
India is the third largest energy-consumer in Asia, just behind China and Japan, and its growing economy has made it more dependent on fossil fuels which are more polluting.
“India urgently needs to explore sustainable energy development and the government has been working proactively to promote the use of renewable energy sources. We are glad we would be partnering with Tata Power to drive this initiative,” said Takeo Koike, an ADB investment specialist.
Meanwhile, in New Delhi, India’s Suzlon Energy has clinched its single biggest contract to supply wind turbine capacity to a US wind power developer, the company said yesterday.
Suzlon Wind Energy Corp, a unit of Denmark-based Suzlon Energy A S (SEAS), has signed a contract for 400 megawatts (MW) of wind turbine capacity with PPM Energy of Portland, Oregon, a statement said.
“This agreement is Suzlon’s single largest contract for wind turbine capacity” so far, said Suzlon, ranked as the world’s fifth leading wind turbine manufacturer with more than six percent of global market share.
Suzlon gave no financial details of the deal.
PPM is one of the largest wind power developers in North America and part of the Iberdrola group, the world leader in wind power with more than 6,500 MW of combined wind power capacity.
The contract calls for delivery of 300 MW turbine capacity in 2008, and 100 MW of capacity in 2009. The capacity, to be supplied through Suzlon’s S88-2.1 MW turbine, will be delivered starting in 2008.
“The size of PPM’s commitment is a clear signal of Suzlon’s capabilities and standing as a supplier in the global wind energy market,” said Suzlon Group chief executive Andre Horbach.
Suzlon is bidding for German wind turbine maker REpower. Last month, REpower said it supported Suzlon’s 1.34-billion-euro ($1.82 billion) offer against a rival one by French company Areva.
“We believe our extensive experience with wind power technology, combined with Suzlon’s drive to continually improve is going to go a long way to benefit wind power projects to come,” said PPM chief executive Terry Hudgens in the same statement.
Suzlon, which has annual revenues of $867 million, has manufacturing facilities in Belgium, China, India and the United States.
