Inox Wind (IWL), which executed 140 megawatts (MW) of capacities during April-June 2024, has set a target of completing 2,000 MW of projects by FY26, ending March 2026.
An integrated player in the wind energy market offering end-to-end turnkey solutions, IWL has an order book of around 3,000 MW, which is its highest so far.
“We aim to execute 800 MW in FY25 and 1,200 MW in FY26. The market is expanding at a good pace and we foresee more tenders for capacities to be floated going ahead,” INOXGFL Group Executive Director Devansh Jain told businessline.
The company has already secured 611 MW of orders, including repeat orders from marquee customers. Active discussion with multiple IPPs, PSUs and C&I customers provides large order visibility, he added.
Positive macro outlook
The wind energy sector’s macro-outlook continues to be favourable, Inox Wind’s CEO Kailash Tarachandani said in an investor call earlier this month.
In the first 4 months of FY25, around 7,000 MW of new wind hybrid FDRE (firm and despatchable RE) tenders have been floated and around 7,500 MW of hybrid FDRE projects awarded, he added.
Tariffs have been healthy and quantitative ranging between ₹3.4-3.5 per unit for central sector wind solar hybrid project, ₹3.6-3.68 for plain vanilla wind and around ₹5 per unit for FDRE.
“The hard work of the last several years has started to yield results, and we are now on the runway, ready for take-off, on the massive growth journey ahead, buoyed by the strong macro tailwinds. Also, IWL’s parent, IWEL infused ₹900 crore recently, making the company net cash positive and strengthening the balance sheet to capitalise on the multi-decadal opportunity in the Indian wind sector,” Jain noted.
With the wind energy market expected to perform well in the coming years, Jain expects to add 3-4 large customers. The company already has 7-8 large customers. Large customers are those who add more than 100 MW of capacities.
IWL is also setting up a new nacelle manufacturing unit near Ahmedabad on lease rental basis, which will provide substantial savings on capex as the lease expenses is less than ₹4 crore per annum. The facility is expected to be operational in 2024.
IWL is bullish on the wind sector in India as it is expected to add 80,000 MW capacity in the next eight years. Besides, there is strong growth in demand from commercial & industrial (C&I) consumers for renewable power due to the green energy transition.
That apart, the draft proposal of domestic content requirement for wind turbines by NITI Aayog may lead to further consolidation of suppliers in the domestic market. Also, India’s green hydrogen targets of 5 million tonnes per annum (MTPA) will require incremental 125,000 MW of RE capacity addition, which will be through solar and wind energy.