Essar to foray into wind power

Energy major Essar is making a foray into the renewable energy sector with a licence agreement with Germany's Re Power to manufacture and market 1.5 Mw wind turbines in India and south-east Asia.

The two companies have agreed to set up a joint venture in the near future, which will allow access to 3 Mw and 5 Mw turbines and a wider market reach.

A senior Essar Power official said the demand for big turbines of 1.5-2 Mw was growing in India, with several MNCs looking at setting up wind farms.

This is the second time in a fortnight that a European wind energy major has announced plans for India.

Earlier, Danish renewables major Vestas had announced plans to go it alone in the country and disinvest from Vestas RRB India, its joint venture.

The Essar plant is expected to be set up in a port-based location that will be finalised soon. The initial investment will be in the region of Rs 50 crore, and this will be financed through internal resources. The company expects to start commercial production by the middle of next year.

India, with approximately 5300 Mw of installed wind power capacity, is expected to see an additional capacity of 1700-1800 Mw in the current fiscal.